MFJ vs MFS with Stimulus for the kids

Forum|Forum|5 years ago
January 26, 2021
7 replies
57 views

I searched with the search button and browsed all the way back to January 1st and did not see the topic that was being discussed earlier.

Husband and Wife with 2 kids. They received the full stimulus for both the first and the second stimulus for both the children.

Now, in filing 2020 tax return, if they file Married Filing Separate with one parent claiming both of the children what does each parent put down as money received for the children? One half each or the one claiming the children claims the full stimulus for the 2 children?

When I read the information I can make an argument for both cases and I have not seen any guidance from the IRS.

Does anyone have any updates?

Thanks,

Dusty Ernie

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Guess it depends on if youre trying to "play" the system or not...Id split it in half.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

rbynaker

Level 13

I'm waiting to see if the IRS comes out with any regulations on the subject but 50/50 is my understanding from the law:

https://www.law.cornell.edu/uscode/text/26/6428

6428(e)(2) Joint returns
In the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

This appears to me to be another "big enough to drive a truck through" loophole that comes from poorly written legislation. There's also the "every other year" dependents from divorced couples where one parent may have gotten the EIP money based on the 2019 return but the other parent gets the RRC in 2020.

itonewbie

Level 15

We also discussed this recently here: https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/eip-possible-benefit-to-file-mfs/01/112701

---------------------------------------------------------------------------------Still an AllStar

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