Stimulus check received by a disabled dependent

Forum|Forum|5 years ago
April 3, 2021
5 replies
32 views

I have a client that has a disabled son with autism. The son receives Social Security Disability payments but does not provide more than half of his needs and therefore is claimed as a dependent. My client has received the latest stimulus check totaling $4200 for him, his wife and son. Then the disabled son received a direct deposit for $1400 as well. Is this correct? I believe that it should be sent back but I can find nothing specific to this situation

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PATAX

Level 12

It does not sound like it is correct since $1,400 was sent for the same person twice, i.e. the first time to the parents since he was a dependent and the second time directly to the disabled dependent... So obviously it appears there has been an error.. just my opinion

BobKamman

Level 15

I was just wondering about that myself, as it applies to a parent with only Social Security income who is claimed as a dependent. Apparently IRS has no way of screening federal-benefits recipients against claimed dependents. I wouldn't send anything back until there is some clarification (not from IRS, they have a poor track record), but I wouldn't spend it either.

BobKamman

Level 15

ARPA kinda sorta anticipates that there will be situations like this and tells IRS (Treasury) to try to do something about it with Regulations. However, it also says that once an advance payment is made, it can't reduce the allowed credit below zero.

“(h) Regulations.—The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including—

“(1) regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (g) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and

“(2) regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined.

K

Kinaro

Level 2

I'm in this situation. My disabled son also got a 1400 deposit after I had already received my stimulus with him included as a dependent. I reached out to the IRS and they informed me to hold on to his and not spend it since they had no guidelines yet on how to deal with this type of thing.

PATAX

Level 12

@Kinaro Thank you for the information....

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