Stimulus checks
I posted the following question that you just answered (thank you!), but I think there was a mis-understanding:
Q:
Have a 24 YO daughter who was a dependent and we listed her as such on 2019 taxes and will on 2020 taxes. This made her un-eligible for any stimulus last year and we couldn’t get any help because she is over 16. We plan to not claim her as a dependent on 2021 taxes, so in theory she should be eligible for checks this year. However IRS has no way to know this and still thinks she is a dependent so no check. She really needs the help now, so is there something she can do to get a check this year? Or does she have to wait until next year to file for a refund?
A:
“WAIT — wait, you have it all mixed up!!! In the next month you will file your 2020 TAX RETURN. If you don’t declare her as a dependent on that return, which you will file mid-February when the forms come out, AND if she can demonstrate that she contributes at least 50% of her own support, then SHE CAN FILE her own 2020 tax return (even with very low income) and claim both the original $1200 and current $600 stimulus checks on Line 30 of her own 2020 return.”
You said “if you don’t declare her as a dependent on that return (2020)…AND if she can demonstrate that she contributes at least 50% of her own support”…but she WAS a dependent during 2020 and she COULD NOT contribute 50% in 2020. However, in 2021 she will contribute 50% and we will not declare her on our 2021 taxes. So can she still claim anything on here 2020 return, and can she start getting checks in 2021?
Thank you for your time!
Terry Says
My previous answer stands. The only way the IRS will know that she is independent is if she files her OWN 2020 tax return. then she can claim both stimulus payments on Line 30.
BUT they will also look at YOUR 2020 return (so you should file first) and make sure she is not a dependent.
The Line 30 credit on her return is a REFUNDABLE CREDIT and she will get it by direct deposit in early March if she files –and includes banking information for direct deposit –when the 2020 forms become available on February 12th.
Read this article.
