Recovery Rebate

[taxu2]

Needing some help on the Recovery Rebate. Client was a dependent on their parents return last year. Therefore, they did not receive the first nor second stimulus payment. This year, they are no longer a dependent. When entering lines 16 and 19 it's calculating an $1,800 refund. Are they allowing the no- longer dependents to recover both stimulus payments then?  

[TAXOH · Accepted solution]

Yes.

[taxu2]

Thanks! 

[TAXOH]

You're welcome.

[qbteachmt]

"allowing the no- longer dependents to recover both stimulus payments"

See if this clarification helps you understand it better, because that isn't what happened.

They got Advanced Funds against a Projection of what 2020 would look like. But the advances are based on 2019 or 2018 tax forms. The 2020 tax info is the Actuals info used to reconcile what you are qualified to get against what you already got paid to you.

[taxu2]

So if the parents did not get the additional stimulus payments because the child was 23 and a college student nor did he then he can claim on this years taxes that he did not receive them since he is not a dependent now and receive the 1800 as a refund? 

[TAXOH]

Correct 

[qbteachmt]

"So if the parents did not get the additional stimulus payments because the child was 23 and a college student"

Stop using any qualification from any year prior to 2020 in your analysis. They Don't Matter Now.

"nor did he then he can claim on this years taxes that he did not receive them since he is not a dependent now and receive the 1800 as a refund?"

You are making this too complicated.

Fill in the 2020 tax forms properly, and if a person got any Advanced Payments you need to show how much they already got, because they got money already. If they also qualify for more, they have a Refundable Credit coming to them.