I have an unmarried couple with one child as new clients. He is filing Head of Household and claiming the child. She is filing Single. The problem: The IRS sent him Letter 6475 stating he received $4,200 in stimulus payments for 2021. However, he filed HOH in 2020 (him + baby). Thus, he received the $1,400 for all three of them. She received nothing. How do I report this on the two returns? I'm afraid if I don't state the entire $4,200 as payments received on his return, it'll cause a red flag. Yet, it could also make him have to pay back $1,400. If I file that she received $0, then she'll get a stimulus credit in her refund. If the stimulus follows the taxpayer, then I report $2,800 on him and $1,200 on her. I know it is a wash, but they don't make much between them and he has been in the hospital for four months due to Covid-19 Delta. They can't afford to pay back anything. What is the correct way to report this? Is there a hardship of some kind so that he won't have to pay back $1,400?