ECONIMIC STIMULAS

[Tiger5]

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?   

[Just-Lisa-Now-]

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.

[Tiger5]

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?

[TAXOH]

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]

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

-1 +1 = 0

[qbteachmt · Accepted solution]

"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.

[Tiger5]

thank you Lisa