one person received 2 $1,400 stimulus (claimed as dependent in 2019, filed on their own in 2020)

Question

Client had already received $4,200 in the third stimulus payment. $1,400 each for him, the spouse and their daughter. Daughter was in college during 2019 and their dependent

Daughter graduated in 2020 and filed on her own for 2020. So, she received the 1st 2 stimulus checks with the return. But now she also was sent the extra $1,400

So, one person received it twice. I googled and one article says to pay it back. it was from a market watch article. Nothing come up on this message board. But turbo tax came up and the thread said to keep it, they won't want it back

Which is correct? This is the first client (I do prepare the daughter's as well) that has had this happen. I am sure I will have others.

Thanks for any help

qbteachmt · Accepted Answer

How would someone college age receive a double payment with stimulus 1st payment or stimulus 2nd payment? Over 17 and claimed by someone else = there wasn't the stimulus payment added for that person. Which is why then this person can get the 1,200 and 600 by filing their 2020 return and claiming themselves.

So, I have no clue why you made the comment you just made to me. My question had nothing to do with anything from last year.

"How would someone college age receive a double payment with stimulus 1st payment or stimulus 2nd payment? Over 17 and claimed by someone else = there wasn't the stimulus payment added for that person."

Perhaps it would help to review what is really happening for EIP “stimulus” funds: The funds were paid out as Advanced payment against a projection. The first two payouts were projected based on 2018 or 2019 tax returns, but the eligibility is part of tax year 2020 as Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be eligible for consideration as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.

The third payout which started in Jan 2021, has different eligibility rules as to dependents and this payout is a projection, using 2019 or 2020 tax returns, then reconciled against Actuals on the 2021 tax return.

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

Interactive wizards portal includes one 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

https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments

One for each of the three EIP “stimulus” payments.

BobKamman · Answer

Happens all the time.  Keep it.  Worry about something important, like the climate emergency.

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