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Level 5
January 23, 2022
Solved

2021- $1400 Economic Stimulus Payment

  • January 23, 2022
  • 7 replies
  • 35 views

I have a situation where a lady who did not file her return because she had no income except social security she received $1400 stimulus payment in 2021.  In the past her daughter did not claim her as a dependent but in 2021 wants to claim her because she provides more than half of her support.  When filling out the stimulus worksheet if I take her as a dependent on daughter's return this year it will populate that she is entitled to $2800 of stimulus payments.  Should I fill in the amount received as $2800 because mother and daughter both received the proper stimulus payments or should I only put in the $1400 that the daughter received because she is the taxpayer therefore the daughter will get another $1400 for the mother on 2021 return because she is claiming mother on 2021 taxes.  Has anybody else seen this.  I know that as far as college students I had a few that claimed themselves on their returns and they received a stimulus payment on 2020 return and the parents received stimulus payment for students also before they filed their returns.  Hope to hear from somebody out there in the community.

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Best answer by PATAX

I would wait a little bit to see if there is further IRS guidance on this and/or ProSeries update... just my opinion

7 replies

taxiowa
Level 8
January 23, 2022

I don't know what the IRS will rule on this matter.  Initially Congress intended that the $1,400 followed the taxpayer to whichever return they ended up on.  But the instructions for the return show just the amount the taxpayer received.

However this is different than students who miraculously all of sudden provided their own support in 2020.  College students did not qualify for first two stimulus, so they were not really double dipping as in in this case.

Level 5
January 23, 2022

Yes you are right they did not qualify if they were over 17.  But the thing in my situation that befuddles me is that if you are overpaid I have found from research that the IRS will not pursue repayment.  I can see this as double dipping as you say.

PATAX
PATAXAnswer
Level 12
January 23, 2022

I would wait a little bit to see if there is further IRS guidance on this and/or ProSeries update... just my opinion