Question

Dependent Stimulus issue

Forum|Forum|5 years ago
March 30, 2021
1 reply
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Stimulus checks were issued based on 2019 tax status and my daughter was a college age dependent for tax purposes. For the 1st and 2nd stimulus checks, she was not eligible for any monies as a dependent; which came to me. In 2020, she was not a dependent and based on the TT questions (she received $0 in money), she is being now being credited with $1800 in stimulus credit which I do not believe is right.

What should be done?

D

DavidD66

Stimulus payments were a prepayment of the Recovery Rebate Credit on 2020 tax returns. The prepayments were estimated based on 2019, and in some cases 2018 tax returns. But ultimately eligibility is determined by a taxpayers 2020 tax return. So, if your daughter does not qualify to be claimed as a dependent in 2020 she would receive a credit of $1,800 on her tax return, if she qualifies based on her income.

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