Stimulus 17 and over

[ILLMAS]

Just to confirm, any whipper snapper 17 and over (dependent on someone's tax return) in 2019 will not qualify for the $500 stimulus payment in 2020?  Worst, they won't even qualify if there are no longer a dependent in 2020? 

[Lion EA]

I they can NOT be claimed by someone else as a dependent in 2020, then they claim their own RRC. If they CAN be claimed as a dependent in 2020, then they do NOT qualify for the RRC. 

[ILLMAS]

Ok, I figure it out, you need to input zero on line 16 and 19 on the recovery rebate worksheet if in 2019 they were a dependent, and not in 2020.

[Chowdahead]

This is good news.  I've read conflicting info on this.  Also, can anyone confirm whether they would be eligible for both the (EP1) $1,200 and the (EP2) $600?  Or would they only get the $500 for EP1 if they file a 2020 return and they are not someone's dependent?

[Abby Normal]

41 minutes ago, Chowdahead said:

This is good news.  I've read conflicting info on this.  Also, can anyone confirm whether they would be eligible for both the (EP1) $1,200 and the (EP2) $600?  Or would they only get the $500 for EP1 if they file a 2020 return and they are not someone's dependent?

2020 rules, so if they are not a dependent in 2020, the get the full amounts of both, if income is low enough, regardless of what their parents already got for them.

[BulldogTom]

Amazing how all the sudden these dead beat kids of my clients are "miraculously" on their own and not a dependent anymore.

Tom
Modesto, CA

[Pacun]

Question has been answered but the other twist is if a child was born on December 31, 2020, that child will get $500 and $600 stimulus on 2020 1040.  Of course that applies to any child under 17 that was not on your return for 2019 regardless if someone else claimed them.

I have a client who didn't work in 2019 and had three children. Her mother claimed her and the three children on her return. Grand mother got $1500 and $1800 in stimulus checks for the children.

In 2020 mother was no longer a dependent and made $24K.  She got $2700 for the first stimulus, $2400 for the second stimulus, plus $4,200 additional child tax credit and a few thousands for EIC, plus a couple of thousand that were withheld.  Nice check coming to her. 

[ILLMAS]

18 hours ago, BulldogTom said:

Amazing how all the sudden these dead beat kids of my clients are "miraculously" on their own and not a dependent anymore.

Tom
Modesto, CA

I am currently doing a training on PPP and if you think this is bad, many business did not need the PPP loan and they don't need to pay it back.

[Medlin Software, Dennis]

19 hours ago, BulldogTom said:

Amazing how all the sudden these dead beat kids of my clients are "miraculously" on their own and not a dependent anymore.

Tom
Modesto, CA

Could be a disabled over 16 child/adult, with the federal $500 credit (plus whatever the state offers, if any) as dependent is less than EIP 1, 2 and possibly 3.  Good tax planning and action if the TP's figure it out.

[Dave T]

Sorry to be obtuse about this but this is the first credit I am doing and am a bit confused.

22 year old student was claimed by his parents in 2019  but not in 2020. He did not get either stimulus payment.  ( I don't believe he would be eligible for the first ) I believe he would be entitled for the second one but when I go through the worksheet it shows him getting $1,800 in Recovery Credit.

Am I correct that his credit should be $600.00?

Thanks very much

[Abby Normal]

He gets 1,800.

[Lion EA]

If he can NOT be claimed by his parents in 2020, he qualifies for both RRC1 and RRC2.

[Dave T]

So I would leave boxes 5 and 8 unchecked in order for the full amount of $1,800.

Thanks very much

[Abby Normal]

Correct

[Dave T]

Thank you