Stimulus check error?

[Harvey Lucas]

My client has paid his minor daughter for years for various chores done around the office.

Pay has always been 3000 per year, w2 issued, payroll taxes, etc, etc.

Client has always filed a return for the daughter, reporting the 3000 W2 earnings and checking the box that indicates daughter is claimed as a dependent on dads return.

Along comes the stimulus program, and whola,the daughter gets a 300 stimulus check.

I thought that a dependent was not entitled to the check?

Am I wrong?

Thank You,

Harvey Lucas

[RLymanC]

Stimulus Check

The Daughter would have had to file a tax return, my guess is the "can you be claimed " box was not checked. If claimed as a dependent, no check.

[Harvey Lucas]

She did file a return.

The daughter did file a return, did check the box indicating she was being claimed as a dependent on dads return, and still she got a check.

Harvey Lucas

[S T]

More Stimulus

Well I haven't had your exact scenario with a dependent that should NOT have received the stimulus, but I have had a couple of t/p that received reduced amounts, that I just can't arrive at the calculation. Those particular taxpayers should not have received any stimulus amounts as they were over the income threshold.

There was a post about "duplicate" payments being issued http://www.thetaxbook.com/forums/sho...stimulus+error, but doesn't seem to answer if the stimulus payment is issued in error or an overpayment in error.

I "googled" and so far nothing, so I would not be surprised if some of these payments don't come back to haunt us and the taxpayer.

I guess the questions would be the same as if the taxpayer received an IRS refund in error, do we or the taxpayer immediately prepare a letter and send it back. I have one on payroll for $9.09 that we believe to be in error and the IRS refuses to accept that, they continue to say that they have a $9.09 overpayment. I am about ready to throw in the towel and just let the taxpayer have the $9.09, as between time, postage and phone calls we have spent more than that.

Keep us posted

Sandy