Economic stimulus payment

[Greta]

In 2019 unmarried client had no dependent because her child was claimed by ex-husband. Ex-husband got $500 stimulus in 2019 for child. In 2020 she is remarried, child lived with her, and Proseries is giving her $500 for additional stimulus payment for child.

Analogous situation for other clients who claim a dependent *every other year*, so stimulus payment forthcoming for the same child in 2019 and 2020. Double-dipping is OK?

[Just-Lisa-Now- · Accepted solution]

This is going to be a fairly common occurrence, we'll just have to wait and see what happens. Technically the person that claimed the child in 2019 shouldnt have received it since it was an advance on a 2020 credit...but the whole thing was put together without thinking things all the way through and here we are!

[itonewbie]

Your client will be eligible for the $500 Recovery Rebate Credit with respect to the qualifying child on her 2020 return.  Period.

It's in Sec. 6428.  Recipient of EIP in excess of the Recovery Rebate Credit will not need to pay back the difference.  Recovery Rebate Credit of an eligible taxpayer will be computed based on information on the 2020 return and that will be reconciled against the EIP that particular individual had received.

This is also explained in EIP Q J3: https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

[Accountant-Man]

I agree with itonewbie that the mom will get the $500, but the spirit of the law says that the $500 is connected to the child, not the taxpayer. So there should be no double-dipping, although there will be.

This happened similarly before with the higher child tax credit, when it increased from $600 to $1,000. But it was allowed.

[JS2020]

Will the same rules apply with the $600 stimulus that was recently issued? Our family falls into this tax situation. My son is claimed on alternating years by myself and his father. Wondering how to proceed since tax season is coming up.

[itonewbie]

@JS2020Your accountant should be able to help or you could try the TurboTax Help site for support.

This Community is only open to tax professionals and does not assist with consumer questions.

[qbteachmt]

"Wondering how to proceed since tax season is coming up."

This is the peer user community for using the ProSeries tax preparation program to prepare clients' income tax returns. That program will have the provisions for the entries for the tax payer unit. You proceed as usual.

The IRS is the best resource for the general public.

You seem to be lost on the internet. I have bookmakrs for stimulus info; it can be found at these links:

https://www.irs.gov/payments/view-your-tax-account

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

https://www.irs.gov/coronavirus/get-my-payment

https://www.irs.gov/coronavirus/second-eip-faqs

https://turbotax.intuit.com/stimulus-check/

Good luck.