2nd Stimulus Check

Forum|Forum|5 years ago
January 8, 2021
1 reply
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Good evening everyone,

Here's my situation. I have myself, my wife, and my stepson that live with me. The 1st stimulus check in April resulted in $2900. $2400 for filing jointly and $500 for my stepson. However, the 2nd stimulus is different. We didn't receive the 2nd stimulus check ($1800) and the IRS is apparently making everyone claim the stimulus using the recovery rebate for our 2020 taxes. Here's the problem. My wife gets to claim her son on her taxes for the 2019 tax year, but for 2020, her ex-husband gets to claim him. Does the IRS view this 2nd stimulus check as part of our 2019 taxes? Or does my wife's ex-husband get to claim him and obtain the $600 stimulus for 2020?

TurboTax Home & Biz Windows

NCPERSON1

it is not going to matter

it is possible for one parent to get a stimulus check for a child because that was based on the 2019 tax return, while the other parent gets to claim that same child on the 2020 tax return and gets the EIP on Line 30.,

It's a loophole in how the stimulus program was put together that Congress knew about and chose not to close when they passed the 2nd stimulus program.

you will not have to return any money related to the stimulus (Line 30 cannot be negative!)

just work through the 2020 tax return and in the federal review section it will ask for the amounts of each payment you received, then if you are due any more money, it will appear on Line 30 of Form 1040, but again, the field can not be below zero.

So in your case, it looks like you got stimulus money for your step-son and his father will get a $600 EIP credit on his tax return for the same child. You will not be required to send back the $600. That is all legal.