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Level 5
May 4, 2022
Question

3rd Stimulus payment

  • May 4, 2022
  • 10 replies
  • 42 views

I have a client whose daughter in 2020 filed her own return and received $1200 & $600 stumulus because she was working.  In 2021 she received a $1400 check but was not working and was a dependant of her parents and they filed for her stimulus.  The IRS sent a notice disallowing her stimulus on the parents return.  She is age 22 and a full time student in 2021.  Is this disallowance correct and if not ow do I go about correcting it?

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10 replies

sjrcpa
Level 15
May 4, 2022

How much was the parents' income?

How much EIP did they receive?

What, precisely, did the IRS notice say?

The more I know the more I don’t know.
Level 5
May 4, 2022

The parents 2021 AGI is $111K.  They received their $2800 and the program added $1400 for their dependant.  The IRS notice said she did not deserve $1400 and they now want it back.

Level 5
May 4, 2022
so in 2020 she paid for more than 50% of her own support? Just becasue she worked doesnt mean she wasnt a dependent.

Lisa I almost always agree with you.  The IRS gave 5 items that may have caused disallowance of which I think none apply.  ss#, name, age, parents income and math error.  Client not happy and i'm not sure how to proceed.

Accountant-Man
Level 13
May 9, 2022

If she got the prepaid 1400 because of 2020 filing, then when her parents rightfully claimed in for 2021 they deserved the 1400 BUT SHE ALREADY GOT IT, then her parents don't deserve it, too.

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