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Level 5
March 10, 2022
Question

Studentst and stimulus number 3

  • March 10, 2022
  • 2 replies
  • 19 views

Student graduated from college May 2021. HAd full time job beginning may , earned 24k through year end.. 

His work pays his health premiums. so hes not on mom and dads. he does live at home.

 so question is pertaining to stimulus 3?.  his parents will not claim in 2021 even tho by virtue of his being a student for 5 months they could.   Their income is too high for any education benefits and no other child credit.  so student now independent will claim himself.  

 

SO in software . if i check yes someone could claim him then no rrc 1400( by virtue of them support for five months). I f i check no then he gets. as well he is now eligible for the aotc for his final semester.   This sounds too good to be true. 2500 plus 1400 by checking the right box.  AS aside i know of several friends whose students were declared " independent in ' in 2020 to get stimulus 1 and 2 not saying its right but it was done(not by me). 

 

so is this easy money or am i missing something?  does the " could" claim him even tho he has earned enough money by 2021 end to claim himself cancel all my checkboxes.

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2 replies

qbteachmt
Level 15
March 10, 2022

Bookmark this:

https://www.irs.gov/help/ita

And use the one for Dependent. Because the EIP eligibility includes "could be claimed" and that makes the difference.

Don't yell at us; we're volunteers
Level 8
March 10, 2022

The EIP is a money "free for all". It's all based on the 2021 tax filing and lots of taxpayers are eligible for the 3rd one, even if it was paid to a parent in 2020.

Presuming the taxpayer is 24 or older, they are entitled to the AOTC education credit, if it has been claimed for less than 4 yrs by the parents.

LiesalAuthor
Level 5
March 10, 2022

tp is under 24, imagine that someone who completes 4 years of school in 4 years , Anyhow I checked the box yes he provided more than half his support as . aotc computes including the refundable portion

 

tuition 24, scholarships 16k

 wages earned 24

LiesalAuthor
Level 5
March 10, 2022

I might  add parents did not get stim money as their income too high nor have they ever been able to claim aotc.