Question

Removing a Dependent + Adding a Dependent

Forum|Forum|4 years ago
March 2, 2022
1 reply
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My step-daughter only lived with us for the first 3 months of 2021. We did receive the 3rd stimulus check for her in March. I also gave birth to a son in August of 2021. According to Turbo Tax I am not eligible for a Recovery Rebate, but wouldn't I still be eligible for the $1400 for my son born in 2021 or does removing my step-daughter as a dependent for 2021 cancel that out?

TurboTax Deluxe Online

DMarkM1

Yes you are correct. The stimulus payment you received was an advance of the Recovery Rebate Credit and was based on your 2020 tax return with your stepdaughter as a dependent. Your Recovery Rebate Credit is based on having 3 people with your newborn but without your stepdaughter on your 2021 return. Since you already received payment for three people there is zero credit remaining to be paid.

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