Third Stimulus Payments and Tax Reporting for 2021

Forum|Forum|4 years ago
November 19, 2021
1 reply
14 views

Hi online commnunity

Does anybody know how they are going to treat the 3rd stimulus payments for taxpayers who have shared custody of a dependent? I heard the IRS has eliminated the "double dip" loophole from the 1 and 2 stimulus but there is no clear cut clarification about how they are going to to do it.

ProSeries Professional

This topic has been closed for replies.

Best answer by athaureaux6

Thanks Bob, that is exactly what I read. It seems they have not figure out yet how to handle this but it looks it is going to be exactly what you said, I read they are encouraging both parents or both taxpayers to have a communication about this subject but like you said, I am expecting a better resolution soon. Thanks.

qbteachmt

Level 15

Pub 17 draft:

"Recovery rebate credit. This credit is figured like last year's economic impact payment, except eligibility and the amount of the credit are based on your tax year 2020 information. For more information, see the instructions for Forms 1040 and 1040-SR, line 30, and the Recovery Rebate Credit Worksheet to figure your credit amount. "

Don't yell at us; we're volunteers

BobKamman

Level 15

That looks like it came from the 2021 edition of Pub 17, for use in preparing 2020 returns. On the 2021 Form 1040, the amount of the Recovery Rebate Credit will be based on 2021 information. The ARP legislation in March 2021 had some language expressing Congressional hope that IRS would figure out a way to avoid double dipping, but I don't think that has happened. They do make you pay it back if you received ACTC for someone not a dependent in 2021.

A

athaureaux6AuthorAnswer

Level 7

Thanks Bob, that is exactly what I read. It seems they have not figure out yet how to handle this but it looks it is going to be exactly what you said, I read they are encouraging both parents or both taxpayers to have a communication about this subject but like you said, I am expecting a better resolution soon. Thanks.

Sign up

Login with SSO

Let's get you signed in

Login with SSO