stimulus payment and dependents

[POCAHONTAS]

so if a client was a dependent in 2019 and the parents received the first and second stimulus payment and the client was not a dependent in 2020 and filed his taxes by himself, do they get their own stimulus of $1200 and $600 if so wouldn't that be double dipping?

[BOB W]

SOUNDS RIGHT... He gets to get stimulus twice. Parents estimated stimulus payment and then again himself. Patents keep any overpayment.

[Lion]

As long as no one else is qualified to claim him. RRC is a 2020 credit; EIP was just an advance of a 2020 credit and had to be based on 2019 (or 2018) returns.

[Gene V]

The way I read this, he is not eligible for the second round, and probably not for the first either.

Who’s eligible for the second round of Economic Impact Payments? (added January 5, 2021)

You aren’t eligible for a payment if any of the following apply to you:

• You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).

See Question and Answer on second payment

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

[Lion]

He wasn't eligible for his own EIP based on 2019, but the RRC is a 2020 credit. If he cannot be claimed by someone else for 2020, he's eligible for RRC. (If he CAN be claimed in 2020 but isn't, he's NOT eligible.)

[POCAHONTAS]

Thanks everyone

So Gene V I found this on IRS website and am agreeing with Bob W and Lion

Recovery Rebate Credit — Topic B: Eligibility | Internal Revenue Service (irs.gov)

B1. Eligibility Requirements: What are the eligibility requirements for the credit? (added February 5, 2021)


A1. The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.
Individuals who didn’t qualify for the Economic Impact Payments or did not receive the full amount of the recovery rebates as Economic Impact Payments may be eligible for the Recovery Rebate Credit based on their 2020 tax situation. If you received the full amount for each Economic Impact Payment, you won’t need to include any information about either when you file your 2020 tax return. You received the full amount if:

• Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child; and
• Your second Economic Impact Payment was $600 ($1,200 if married filing jointly) plus $600 for each qualifying child .
  If you either didn’t receive any Economic Impact Payments or received less than these full amounts, you may be eligible to claim the Recovery Rebate Credit based on your 2020 tax information and must file a 2020 Federal tax return.

Generally, if you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, you are eligible for the Recovery Rebate Credit. Your credit amount will be reduced if your adjusted gross income (AGI) is more than:

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals filing as a single or as married filing separately.

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.
You are not eligible for the Recovery Rebate Credit if any of the following applies:

• You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment issued before the due date of your 2020 tax return (including extensions). Some exceptions apply for those who file married filing jointly where only one spouse must have a valid Social Security number to claim RRC.
• You are a nonresident alien.
• You are an estate or trust.

Also, individuals who died prior to January 1, 2020 are not eligible for the Recovery Rebate Credit.
See IRS.gov/rrc or the Recovery Rebate Credit Worksheet available in the Form 1040 and Form 1040-SR instructions for more information.
Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. The fastest way to get your tax refund is to file electronically and have it direct deposited - contactless and free - into your financial account. You can have you refund direct deposited into your bank account, prepaid debit card or mobile app. You will need to provide the routing and account numbers no matter which option you choose - bank accounts, prepaid debit cards or mobile apps.



Recovery Rebate Credit — Topic B: Eligibility | Internal Revenue Service (irs.gov)

B1. Eligibility Requirements: What are the eligibility requirements for the credit? (added February 5, 2021)


A1. The eligibility requirements are the same for the Recovery Rebate Credit as they were for the Economic Impact Payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. The Economic Impact Payments were based on your 2018 or 2019 tax year information.
Individuals who didn’t qualify for the Economic Impact Payments or did not receive the full amount of the recovery rebates as Economic Impact Payments may be eligible for the Recovery Rebate Credit based on their 2020 tax situation. If you received the full amount for each Economic Impact Payment, you won’t need to include any information about either when you file your 2020 tax return. You received the full amount if:

• Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly) plus $500 for each qualifying child; and
• Your second Economic Impact Payment was $600 ($1,200 if married filing jointly) plus $600 for each qualifying child .
  If you either didn’t receive any Economic Impact Payments or received less than these full amounts, you may be eligible to claim the Recovery Rebate Credit based on your 2020 tax information and must file a 2020 Federal tax return.

Generally, if you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, you are eligible for the Recovery Rebate Credit. Your credit amount will be reduced if your adjusted gross income (AGI) is more than:

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals filing as a single or as married filing separately.

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.
You are not eligible for the Recovery Rebate Credit if any of the following applies:

• You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment issued before the due date of your 2020 tax return (including extensions). Some exceptions apply for those who file married filing jointly where only one spouse must have a valid Social Security number to claim RRC.
• You are a nonresident alien.
• You are an estate or trust.

Also, individuals who died prior to January 1, 2020 are not eligible for the Recovery Rebate Credit.
See IRS.gov/rrc or the Recovery Rebate Credit Worksheet available in the Form 1040 and Form 1040-SR instructions for more information.
Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. The fastest way to get your tax refund is to file electronically and have it direct deposited - contactless and free - into your financial account. You can have you refund direct deposited into your bank account, prepaid debit card or mobile app. You will need to provide the routing and account numbers no matter which option you choose - bank accounts, prepaid debit cards or mobile apps.

[Gene V]

I agree, that wording diffidently change from 2019 to 2020 on your February 5, 2021 RRC report.
Looks like the individual would get the credit if he can't be claim my someone else.

[spanel]

so if a client was a dependent in 2019 and the parents received the first and second stimulus payment and the client was not a dependent in 2020 and filed his taxes by himself, do they get their own stimulus of $1200 and $600 if so wouldn't that be double dipping?

Be careful on this return... If you are saying the parents received a stimulus check for the child.. that means the child would have to be 16 in 2019, 17 in 2020. Why are they not claiming a 17yr old???

Chris

[Lion]

Exactly. The checkbox is "Someone CAN claim You as a dependent" not DID they claim...