I have unmarried couple not living together who alternate claiming two daughters. In 2019 the mother (my client) claimed the 15 year old. This year she claims the 17 year old. She received the appropriate amount according to 2019 return...1200 and 500 and the 600 x2. I believe that she does not need to pay that back as this year 2020, this would be an overpayment. However, in 2020 she had another child with new boyfriend. I believe that she can not get recovery credit for this new baby, since she already received the money for the 15 yr that she is not claiming this year, so it washes out the new baby credit. Is this correct?
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Have you completed the Recovery Credit Worksheet in the 1040 instructions for this taxpayer? If you do, you should find the answer to your question which by the way is no.Originally posted by lady di View Post -
I did use the worksheet and I did not come up with any additional credit...if this is not correct I am not sure where I went wrong.Comment
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I apologize - I misread your fact pattern. You are correct. The 2020 credit (I assume the baby is claimed by mom as a qualifying child) is based on 12/31/2020. Mom calculates the credit based on the new baby only and it is $1,100 but since the now departed dependent was awarded the $1,100 in the prepayment then mom has already received the full amount due. Sorry I misread.Originally posted by lady di View PostComment
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