Stimulus and college student

[MGC94]

Claimed college dependent in 2018 and 2019. 

College student, makes $17,000 a year, does not pay 1/2 of support. 

Should I file her:

1. as a college dependent on her parents taxes

or 

2. Have her claim herself and do the recovery rebate and let her get the $1,200 and $600?

Thank you for your input 

[taxiowa]

 How much is college costs and who is paying for it will go along ways towards determining if student is paying more than 1/2 of her support.  Is it loans?

[sjrcpa]

And if loans - who is liable? Student or parents?

[sjrcpa]

If your facts are correct 1. is the only option.

EDIT: or rather, 2. is not an option.

[MGC94]

College is $4,000 community college. Students parents pay for school, housing costs and her health insurance. That is where I am coming up with 1/2 of support. In our area she would not be able to pay rent making $17,000 a year 

[qbteachmt]

"2. Have her claim herself and do the recovery rebate and let her get the $1,200 and $600?"

Perhaps it would help to review what is really happening:

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

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

One for each EIP.

[Dave W]

Please forgive the technical accounting jargon but, "The facts is the facts!"