Question

Am I eligible for stimulus money for my children?

Forum|Forum|5 years ago
January 8, 2021
1 reply
0 views

Their father claims them as dependents on paper, but they do not live with him at all, he lives 2000 miles away from them, and he didn't qualify for any stimulus due to income. They live with me 100% of the time and I do qualify based on income, but since they aren't my dependents on paper for the 2019 tax season, will I not qualify for the stimulus payments for them at all?

N

NCPERSON1

Yes you are!

2019 doesn't matter - it's all about 2020 tax return..

just fill out the tax return and answer the stimulus payment questions in the federal review section of TT.

PAYMENTS were ESTIMATES based on 2019 and 2018 tax returns,

EIP is what you are ACTUALLY due based on the 2020 tax return less what YOU have already received.

if the ACTUAL exceeds the estimate, then you get the difference in Line 30 of Form 1040. It will increase your refund (or reduce what you owe)

if the ESTIMATE exceeds the actual, meaning you got too much you do NOT owe it back. Line 30 will be zero and cannot be negative

so does that mean that a child of divorced parents could have gotten one parent a PAYMENT based on the 2019 tax return and then gotten the other parent an EIP CREDIT based on the 2020 tax return? YES!! one child in a divorce situation where who claims the child is traded off each year on the tax return is worth two children!! it's a loophole that Congress chose not to close!

(but in your case your ex didn't get the Payment because his income is too high, but he otherwise would have received stimulus to include the child on his 2019 tax return)

make sense?

D

DerekE24

How can I enter the following situation in Turbo Tax:

Child A - was claimed 2019 on our taxes and we received EIP for him, but we cannot claim him in 2020.

Child B - was not claimed on 2019 but we are able to claim him in 2020.

The program is not giving me the option to add Child B to this year. It is counting Child A from last year.

What is the suggestion on how to enter this in Turbo Tax to gain the appropriate amount?

DMarkM1

The Recovery Rebate Credit on your 2020 tax return is based on information on your 2020 tax return only. If you are claiming a qualifying depended child age 16 or under on your 2020 return, the child Recovery Rebate Credit eligibility amount will be $1100 (500 and 600 for rounds 1 and 2).

That Recovery Rebate Credit will be reduced by any stimulus payments you already received. So if you received child stimulus amounts $500 and $600 already, then you have received all that you are eligible for.

The payments in rounds one and two are advances on the Recovery Rebate Credit on your 2020 tax return. It does not matter that the earlier payments were for a different child.

Here is a link with more information on the Recovery Rebate Credit.

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