$1400 EIP3

[BIGPETE]

A parent claims themself in 2020 simply to get both EIP1 & EIP2 as a $1800 refund and also received EIP3 as a direct deposit later in 2021. If the parent's daughter goes back to claiming her again for 2021 can the daughter legally claim EIP3 for her mom on the recovery rebate credit form? ProSeries does show a $1400 credit for the parent. Is there any information available that specifically states that double dipping will not be allowed for 2021 taxes?

Thanks for your help

[jeffmcpa2010]

You may want to read the rules on claiming of dependents. It is not necessarily a choice to move back and forth.

I use this tool to determine the dependency, and after that look at what happens to the credits.

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

[IRonMaN]

Silly me.  I kinda thought the IRS has some rules about whether or not someone provides more than half their own support in making that determination.  I didn’t realize the rules were changed to - “the biggest refund” in determining dependency issues.

[TaxGuyBill]

As the others pointed out, "claiming themself" is not an optional thing.  If the daughter was ELIGIBLE to claim the parent as a dependent in 2020, it seems like the parent may have committed tax fraud.  If the daughter wants to claim the parent in 2021, you need to make sure that she actually qualifies to claim the mom.

In answer to your question:

• The law gave direction to the IRS to provide rules to avoid this sort of double-dipping of the $1400.
• As of now, the IRS has NOT provided any rules to avoid double-dipping, and the 1040 Instructions do not mention anything about it.