More on stimulus rebates

[Jesse]

I had a couple drop by that normally don't file but of course this year is different. They filled out the stimulus returns they received in the mail - both of them!

With these mailings it appears EACH of the Soc Sec recipients received a notice - how confusing to people that don't normally file, what a mess the IRS will have, more of our tax dollars to go to work to straighten out the nightmare!

So they each filled out the 1040A that was sent to them, MFJ, wife listed first and husband as spouse on one and husband listed first with wife as spouse on second 1040A, and the amount that only they received for SS benefits on each.

Now will each receive a check for $300? or each a check for $600? or both a check for $600? or follow up notices that there is an error and need to refile or complete more paperwork?

[Burke]

Good question. Who knows? I have been besieged with questions on these things, they were even sent to children on SS! What a nightmare. I guess they thought they were being helpful.

[BP.]

Yeah, these 1040-A3 notices to SS recipients have generated confusion, and a lot of calls.

Here's another snafu: Mom receives only SS income and qualifies as daughter's dependent. As usual Mom & daughter come in together for daughter's appt. Mom proudly tells how she got her package from the IRS, read the instructions (apparently, selectively) , filled it out herself, and sent it in, because "all seniors qualify for $300." So, if daughter loses mom as dependent, so that mom can get her $300, then daughter loses her $510.

Does this mean we'll need an Amended Stimulus Payment Form 1040-A3X . . . ?

But seriously, if daughter claimed mom anyway, and mom didn't check that she is someone's dependent, I wonder whose claim is denied first, mom's stimulus payment request, or daughter's dependency exemption for mom?

[AZ-Tax]

Mom on daughters return

Well I think BP may have answered my question. Mom (SS recipient) lives with daughter and son in law and is claimed as dependent on this couples return. I was considering having the mom file her own tax return but leaving the mom as a dependent on this couples tax return.

[oceanlovin'ea]

Happened yesterday

That happened yesterday to me. Client came in and I prepared her tax return as normal, claiming her mother as her dependent. Then I did her mother's stimulus return, but forgot to mark that she could be claimed as dependent on another return.

I electronically filed both returns. Mom's got accepted and daughter's rejected. But what saved me was that the daughter owed $73 so I just had her mail in her return and payment. I didn't mess up her refund. I did an amended return for mother and gave that to them to mail in.

Got to watch that situation more carefully.

Linda F

[BP.]

Linda, what am I missing? Why file a stimulus return for the Mom, when she won't qualify for a payment, as she is someone's dependent?

From Pkg 1040A-3 sent to SS recipients: "You are not eligible for an economic stimulus payment if you can be claimed as a dependent on someone else’s tax return."

[oceanlovin'ea]

Oops

I missed that point. They won't get any money for the mom, will they?

So she just misses out? That is strange.

I'll wait to tell them that point till they call me later.

Linda F