EIP recovery worksheet

[rickw1]

My client received $1200 for herself and $500 for her dependent  in 2020 .She also received $600 for herself and $600 for her dependent  in 2021.

Per her divorce decree she gets to claim a second dependent on her 2020 tax return. When I add the second child to the return, the recovery sheet adds a recovery amount of $500 for the first payment and another $600 for the second. 

Her ex already received these 2 payments totaling $1100.

How do I adjust the recovery worksheet to not calculate the $1100 credit.

[TAXOH]

There is nothing to adjust.  The calculation is correct.

[Just-Lisa-Now-]

$1100 is correct, shes claiming 2 kids in 2020, so she gets the EIP for that second child that she didnt get as an advance during the year.

$500 for the first advance, $600 for the second advance she didnt get those for child number 2, so she gets those on the tax return.

[BobKamman]

Try looking at it this way:  You get the credit if you took care of the kid for at least one of the last two years.

The payments don't go to the kids.  They go to the adult.  

[linette]

Explanation is that the law doesn't penalize for money that was received that you weren't entitled to.

Her ex gets to keep the money because they gave it to him.

She gets the money because for 2020 they are dependents on her return.

There are many things in this that will seem that they aren't fair or aren't right.

[BobKamman]

The law says the ex was entitled to the money.  But you are always entitled to your opinion.  

[athaureaux6 · Accepted solution]

The calculation is right, the IRS already recognized that in some cases of divorced parents with "alternative custody / dependency" something like that could happen. So , do not worry the calculation is fine.