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    ECONIMIC STIMULAS

    Tiger5
    Level 4

    I have a client that received both there economic stimulus. She claims her step child one year on and one year off. So she received the stimulus for 2 children her child and her step child. She had a baby in July and I read that if you had a baby in 2020 you can claim 1,100 on your tax return? Is this correct? and she is not claiming her stepchild this year. Would i calculate this in recovery rebate credit sheet on my Proseries or were would I add this?   

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    1 Solution

    Accepted Solutions
    qbteachmt
    Level 15

    "and I read that if you had a baby in 2020 you can claim 1,100 on your tax return? Is this correct? and she is not claiming her stepchild this year"

    That makes it a Wash, then. Perhaps it would help to review what is really happening:

    The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

    You might want to bookmark these links and read the IRS guidance.


    Interactive wizards portal for determining dependency:

    https://www.irs.gov/help/ita

    And:

    https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

    https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

    One for each EIP.

    *******************************
    "Level Up" is a gaming function, not a real life function.

    View solution in original post

    6 Comments 6
    Just-Lisa-Now-
    Level 15
    Level 15
    If she received the advance for 2 kids and shes claiming 2 kids on her return, shes gotten all the stimulus money shes entitled to.

    ♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
    Tiger5
    Level 4

    but she is removing her stepchild that she had on her last years return and this year she adds the baby she had in 2020. which she didn't get the stimulus for?

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    TAXOH
    Level 11

    But she did get it for the stepchild and should not have since she is not claiming them in 2020.   So the stepchild and newborn cancel each other out.

    IRonMaN
    Level 15

    This is where all of those math classes in college pay off:

    -1 +1 = 0


    Slava Ukraini!
    qbteachmt
    Level 15

    "and I read that if you had a baby in 2020 you can claim 1,100 on your tax return? Is this correct? and she is not claiming her stepchild this year"

    That makes it a Wash, then. Perhaps it would help to review what is really happening:

    The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

    You might want to bookmark these links and read the IRS guidance.


    Interactive wizards portal for determining dependency:

    https://www.irs.gov/help/ita

    And:

    https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

    https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

    One for each EIP.

    *******************************
    "Level Up" is a gaming function, not a real life function.
    Tiger5
    Level 4

    thank you Lisa

    0 Cheers