Budmeister
Level 3
‎02-13-2022 08:43 AM

Confused on this issue- divorced parents alternating 'dependency' and the 2021 economic stimulus payment -- can parent taking child as a dependent on 2021 form 1040 receive the stimulus payment of $1400 , even though the other parent took him as a dependent on 2020 return and received the stimulus $1400 payment in March 2021 ??

Thank for un-confusing me !!

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GodFather
Level 8
‎02-13-2022 09:02 AM

I have not run across this issue and I'm not 100% sure, but I think the IRS uses the 2020 return to determine which parent is eligible to receive the stimulus and future credits.  This is based on an article I found in Forbes but I would defer to someone else who knows for certain:

https://www.forbes.com/sites/heatherlocus/2021/03/31/how-divorced-families-can-maximize-their-relief...

 

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Budmeister
Level 3
‎02-13-2022 09:40 AM

Thank you-  but does anyone know of any IRS instructions or guidance on this issue.?

Appreciate all your thoughts

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Terry53029
Level 15
Level 15
‎02-13-2022 10:04 AM

Just put what your client received on the letter from IRS, or if no letter have client open account on IRS.GOV, and check what the irs sent him/her. Don't worry about about who claimed who or when.