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See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProSeries Hot Topics.
See what's trending for the November 15th deadline (Form 990) and resources for the upcoming tax season. View ProSeries Hot Topics.
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Dependent and Recovery Rebate Credit
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CAMPER939
Level 1
02-12-2021
02:03 PM
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My client's son was 17 in 2019 and had earned income of $1,500, so parent's claimed him as a dependent and of course they didn't receive any Stimulus money for him. Now in 2020 he is 18 has earned income of $8,649. and unemployment of $17,655 to total $26,304. My questions are: Can he claim himself to get the Recovery Rebate of $1,800? His earned income of $8,649 is not him earning over half of his support or is the unemployment in that calculation to show that he is? Should his parents still claim him for 2020? Also, this triggers form 8615 because of the unemployment considered as unearned income. I am at a loss as which way to go and would appreciate help in this situation. Thank you.
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1 Comment 1
TaxGuyBill
Level 15
02-12-2021
03:01 PM
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@CAMPER939 wrote:
My questions are: Can he claim himself to get the Recovery Rebate of $1,800?
His earned income of $8,649 is not him earning over half of his support or is the unemployment in that calculation to show that he is?
Should his parents still claim him for 2020?
Also, this triggers form 8615 because of the unemployment considered as unearned income.
The Rebate Recovery Credit has nothing to do with it. You need to determine if the child CAN be claimed as a dependent or not (and that will determine if he qualifies for the Recovery Rebate).
Income is not support. Did the child SPEND money that he paid for over 1/2 of his own support (it does not matter if the income is earned or unearned). You may need to have the Support Worksheet filled out.
https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
If the parents' qualify to claim him, in most cases they should claim him.
Yes, the Kiddie Tax applies.
