Girlfriend and Stimulus

[SherylMeyer]

Girlfriend and Stimulus Payment. Girlfriend has been an other dependent on taxpayers return for several years. Makes less than $2,000. Wants to file on her own in 2020 and get the stimulus. But they way I read the rules, she is NOT eligible due to the fact that should could be his dependent, and therefore is in-eligible whether he claims her or not.

[TaxGuyBill]

Correct.

If they had done some planning, she may have been able to work a bit more and have over $4300 of income (which would disqualify her from being a dependent). But as you said, she can't receive the credit because she qualifies as a dependent.

[TAXNJ]

Yes, as mentioned in the above reply post. (See “Eligibility” in the attached for your reference)

https://www.irs.gov/coronavirus/second-eip-faqs

[Snaggletooth]

Girlfriend can file her own return in 2020, and stimulus will attach to her even though she didn't receive it based on being a dependent in 2019.

[New York Enrolled Agent]

Girlfriend can file her own return in 2020, and stimulus will attach to her even though she didn't receive it based on being a dependent in 2019.

Snags - good to see you back after your hiatus.

However, based on the original post the girlfriend is qualifying relative and thus is ineligible for the RRC. IRC 6428 excludes any person who would be “allowable” as a dependent.

[Snaggletooth]

Thank you NYEA, quite comforting to know you are still here.

Is there an income level below which someone can claim their own dependency? Last year I claimed a college student as her own dependent with only $1700 income. She paid for her college with $15,000 drawn out of savings account which was in her own name. Of course, the money in savings had been put in there by her parents over the years, but she was the only owner listed, with her father listed only as payable on death.

[Lion]

A qualifying child would have to pay more than 50% of their own support to no longer be a QC. You can fill out a support worksheet with the child and with the parent(s) to see if the child supports herself. In the area I live in, parents spend a whole LOT of money on their children. So, your coed who spent $16,700 on herself probably would be a dependent still of most of my clients and NOT take her own dependency exemption. Your area of the country can vary from mine. For a qualifying relative, such as the girlfriend in the OP, once she earns over $4,300 (or whatever the amount is for the year in question), she fails to be a QR.

[TAXNJ]

One can reference “Dependency Tests for 2020” The TaxBook Tab 3-10. Shows an easy to follow chart of information.

[Snaggletooth]

Lion, claiming 50% is a two-edged sword. $15,000 is a lot of money, and girl does pay her own tuition. She also lives at home, and her dad makes a ton of money or else he would not have been able to set up her huge saving account.

Other folks want to claim their children forever as if it were a God-given right. If a 19-year old chlld makes $10,000, then if a parent wants to claim, they are going to have to establish that their total support is over $20,000. I disallow on that basis, especially if Mom & Dad have only a W-2 for $45,000 and two other children. In other cases, if parents are paying Vanderbilt tuition (don't ask, you would faint), and child is a student making $15,000, claiming 50% is an easy thing to do.

[Lion]

I have clients with their kids at Vanderbilt. The kids do NOT pay over 50% of their own support, though, because Daddy pays the tuition, R&B, car, airfare, books, spending money, ski trip to Jackson Hole, etc.

[Rapid Robert]

If a 19-year old chlld makes $10,000, then if a parent wants to claim, they are going to have to establish that their total support is over $20,000.

No, they won't, because income and support are not the same thing.