Stimulus overpayment??
I was listening to you on WGN today, Wednesday, and you mentioned the IRS will compare 2019 and 2020 tax filings. In 2019, we claimed our college age son as a dependent. Our, the parents, 2020 returns have not been filed yet. NOW, for the 2020 tax year, our son is NOT a dependent. He, son, filed 2020 taxes and received the 3rd stimulus, $1400. We, the parents, today just received $4200 (3×1400) in stimulus money. IRS used out 2019 returns. Technically, we received $1400 too much. Will this be discovered by IRS when comparing the 2019/20 tax returns? Should I keep this “extra” $1400 aside because IRS will want it back? Thoughts!!!!
Terry Says
Interesting, that has happened to several people, all very innocently. The IRS has made a point of saying if you are overpaid based on the difference in earnings between 2019 and 2020, they will not ask for it back. This isn’t quite the same thing. I’d keep it in savings to see if they ask for it back. there is no way to proactively return the extra money, even as an honest gesture. It will for sure mess things up. So yes, just set it aside.