Level 2

to get a stimulus or not

Forum|Forum|4 years ago
April 16, 2022
3 replies
14 views

College kid with part time job files his own return and gets stimulus, EIC and AOC. if I use the drop-down screen correctly and put them as 'could be claimed as a dependent', they don't get anything.

Since the creation of the stimulus, college kids have been getting the stimulus and other credits, simply by filing their own 1040. I am looking for something in writing that says 'if you could be claimed as a dependent, then you don't get the stimulus or eic.....

The Master tax guide only mentions 'could be claimed' in reference to unearned income, but not for EIC.

The AOC is specific that only the parent who COULD claim the student can use the tuition expenses

This topic has been closed for replies.

B

Bsch4477

Intuit Community Champion

A simple Google search will inform you that a taxpayer who can be claimed as a dependent cannot get EIC or stimulus payments. However a student who can, but is not claimed, can get the non refundable portion of the AOC.

T

Third Gen GatorAuthor

Level 2

I guess I should not have used Duck, Duck, Go....

i never saw anything that simply explained stimulus with could be claimed.... that could be sent to a client. could you link me to one?

i totally agree with you on the stimulus and EIC, but old school accountant Master tax guide is ambivalent...

qbteachmt

Level 15

"could you link me to one?"

Sure; here's how you do it. Google:

RRC 2021 eligibility

because you are asking about the Credit, not the EIP which was advanced projection Payment.

You get this result:

https://www.eitc.irs.gov/other-refundable-credits-toolkit/what-you-need-to-know-rrc

It tells you:

"Who is an eligible taxpayer for RRC?

An eligible taxpayer must:

Have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions). (Exceptions apply for members of the military and their spouse).
Be a U.S. citizen or U.S. resident alien. For more information see Publication 519, U.S. Tax Guide for Aliens.
Not be a dependent of another taxpayer's tax return for tax year 2021."

The same as your Program is handling it.

On the Left Side of that page, you see other IRS links. Such as:

https://www.eitc.irs.gov/partner-toolkit/hot-topics-for-our-partners/refundable-credits-news-and-updates

Now you should be able to research for yourself.

Don't yell at us; we're volunteers

qbteachmt

Level 15

The software you paid for tells you, "if you can be claimed" then you don't get the Stimulus. Just because people are filing incorrectly, should have no bearing on you filing correctly for your clients.

The IRS has all of the qualifications in the various topics at irs.gov. Yes, each credit has its own eligibility tests. You can work through them.

Don't yell at us; we're volunteers

BobKamman

Level 15

When all else fails, read the law.

ELIGIBLE INDIVIDUAL.—For purposes of this section, the
term ‘eligible individual’ means any individual other than—
,,,
‘‘(2) any individual who is a dependent of another taxpayer...

That’s from the American Recovery Act, but similar language can be found in the statutes enacting other credits or payments.

I count 25 words. Which ones do you not understand?

An individual who is a dependent does not avoid that status by claiming not to be a dependent.

And people are still paying that Dutch company good money to rewrite simple English into ambiguous gobbledygook.

T

Third Gen GatorAuthor

Level 2

these kids are not being claimed by the parents, so they think that that makes them, 'not a dependent' and eligible for the stimulus

qbteachmt

Level 15

"so my Oncologist's college student son, if not claimed by the parent, can get a stimulus?"

No.

The wording is "if you can be claimed as a dependent" and not "Won't Be Claimed." In other words, a dependent, even if filing separately, does not qualify for Stimulus on their own.

Why do you not believe how the software is handling it?

"these kids are not being claimed by the parents, so they think that that makes them, 'not a dependent' and eligible for the stimulus"

A professional preparer is signing that you are the responsible party, though.

"not being claimed" is not the same as "can be claimed."

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO