3rd Stimulus
The 3rd economic impact payment was based on the 2020 tax returns but was an advance on the 2021 tax return. The IRS says that if you received more than you would have based on your 2021 return, that there’s no provision in that law that would make you give it back:
https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-h-reconciling-on-your-2021-tax-return
I have triplets, all who were dependents in 2020. They were NOT dependents in 2021. I can’t find anything on whether or not they could get the stimulus rebate on their 2021 returns. I spoke to a colleague who’s a CPA and he said that only one of us can claim the stimulus, but I STRONGLY disagree. This is not same as two different people claiming the same tax credit on their tax returns. For example, my kids couldn’t claim the education credits on their tax returns for 2020 because my husband and I claimed them. This is not the same. The IRS clearly knows that because the advance would result in overpayments in many cases. I don’t see anything that says due to method for determining the amount of the stimulus, others who were eligible for the stimulus can’t get it. This is not the same as two people claiming the same deduction.
Can you reach out to your contact at the IRS and find out how this will be handled?
Thanks!!!
Terry Says
If your kids were dependents on your 2020 return, they qualified for the stimulus payment of $1400 each. Ordinarily you would claim the $1400 for each of them on your 2021 return, which you are filing now, on Line 30.
BUT, if you are not going to claim them as dependents on this same return, it could get tricky! I could see where the IRS might balk. SO, if you contributed more than half of their living expenses in 2021, you could claim them on the return you are about to file.
BUT, if they are out of school and working and independent, and therefore planning to –or needing to — file their own returns, they could claim the stimulus on their own return on line 30.
Either way, you’ll probably tempt the IRS to take a second look — if you don’t claim them this year or if they are filing for the first time.
PS Being the mom of triplets — and getting them safely out of the house — I think you DESERVE the stimulus payments!!
