Recovery Rebate

[hschlesinger]

Husband and wife divorced. Father gets child as dependent every other year. Child with  mother in 2019 and assumed to have gotten the $500 and $600  for this child. In 2020 software, the calculation on the recovery rebate worksheet gives the child another $500 plus the $600 for 2020. Then it gives the father a credit of $1100.  This doesn't seem correct if child already gave a parent these monies.

Suggestions?

[Just-Lisa-Now-]

Whomever claims the child in 2020 is entitled to the credit. 

Doesn't matter who got the advance based on 2018 or 2019 returns.

The parent that got the advance that they technically were not entitled to, does not have to pay it back.

If youre working with Dad, dont worry about what mom already got.

It doesnt seem correct, but thats how it works.

[BobKamman]

@Just-Lisa-Now- 

You're making a list of the banned phrases, right?

"Not fair."

:"Not logical"

:"Doesn't make sense."

And of course the perennial favorite, "I was told."

[RollTide68]

https://www.graham.law/blog/cares-act-stimulus-payments-divorced-parents/

Good article

TLDR

IRS "might" put out guidance to address but has not as of now