Question

How to claim the Recovery Rebate Credit for a qualifying dependent who I am NOT claiming this year?

Forum|Forum|4 years ago
April 6, 2022
1 reply
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I have a daughter (age 21) in college who was required to file her own tax form 2020; her earned income did not provide more than 50% of her support and I claimed her as a dependent that year. She was therefore not eligible for stimulus checks #1 and #2 that year. Although she was still a qualifying dependent in 2021 and still has to file her own tax form and her earned income still did not provide more than 50% of her support, I decided NOT to claim her as a dependent on my 2021 taxes. In her personal info section in TT, I marked that "someone else can claim her on their tax return", but then checked the box that "no one will claim her in 2021". This should make her eligible for the third stimulus check, but this does not trigger TT to check for eligibility in the federal review section. How can this be fixed so she receives the recovery rebate credit?

E

ErnieS0

The Rebate Recovery Credit is not a pick and choose option.

If your daughter qualifies as a dependent, then the $1,400 belongs on your tax return. You can give her the money when you receive it. It’s not taxable to her.

She would be ineligible if someone can claim her as a dependent, whether or not someone actually did claim her.

The IRS may audit your daughter if she receives the stimulus and appears to not be self-supporting based on her income.

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