Over stimulated

[tractor]

So, the deposit arrived today. I haven’t filed my 2020 taxes yet because I have to pay so I’m waiting until the last minute.

The IRS based my payment on my 2019 taxes correctly, as I had 5 dependents. I will only claim 4 on my 2020 taxes. My son filed on his own for 2020 and he correctly received a payment as well this morning.

I assume I will have to pay back the extra $$ I received for my son who I claimed as a dependent in 2019. Does this get caught up on my 2021 taxes? I can work with that. I know this came up before with other posters, but I don’t know how it was resolved.

[minnesotapaintlady]

There is no clawback of stimulus payments.  This has been addressed by the IRS for numerous scenarios.  One of the most common is divorced parents claiming the kids every other year and both getting the stimulus.

[tractor]

Mar 17, 2021 8:06:41 GMT -5 minnesotapaintlady said:

There is no clawback of stimulus payments.  This has been addressed by the IRS for numerous scenarios.  One of the most common is divorced parents claiming the kids every other year and both getting the stimulus.

Wow, so I can spend the extra on new toys?

[minnesotapaintlady]

Mar 17, 2021 9:40:08 GMT -5 tractor said:

Mar 17, 2021 8:06:41 GMT -5 minnesotapaintlady said:

There is no clawback of stimulus payments.  This has been addressed by the IRS for numerous scenarios.  One of the most common is divorced parents claiming the kids every other year and both getting the stimulus.

Wow, so I can spend the extra on new toys?

I'm pretty sure!  It sounds like they might be making it where the recovery rebate credit doesn't work next year, but that isn't the same as you both already getting it. 

Is the loophole for joint-custody stimulus checks closed for the third payment?

Many parents who aren't married and share joint custody of their children actually received two payments for the same child during the first round of stimulus checks, if they alternated years claiming those children on their taxes. In other words, if one parent claimed a child in an even year and the other in an odd year, both could recieve checks for that child. That's because the IRS looked at two different tax years -- 2018 and 2019 -- to determine eligibility for the first check.

For the second stimulus check, the IRS only looked to 2019 tax returns, but that doesn't mean the double-dipping loophole was closed entirely. If you're a parent in a joint-custody scenario like the one above and you typically claim a dependent child in odd-numbered tax years, you may be able to get a duplicate $600 child dependent payment as a tax credit when you file and claim the child on your tax return, similar to what you'd do if you did not receive a second stimulus check despite being eligible for one.

That loophole could be closed off in the new stimulus bill that authorizes the third check. According to Andy Phillips, director at The Tax Institute at H&R Block, parents who aren't married to each other and who alternate custody of an eligible dependent might not both qualify to receive stimulus money for the same dependent this time around.

Phillips said because of guidelines Congress included in the new law, "it's possible that if an advance payment is received by one parent for the dependent, no additional payment can be made for the same dependent on the other parent's return (by claiming the Recovery Rebate Credit)." Phillips said the Treasury Department is expected to issue guidance on this situation.

www.cnet.com/personal-finance/stimulus-check-loophole-for-child-support-will-the-irs-let-both-parents-get-1400-per-kid/

[Deleted]

DD/DSIL scratching their heads trying to figure out why they got stimulus payment for themselves and for their two kids. Kids got payments, too.

DD has moved the "extra" $2800 to savings, waiting until the IRS wants it back.

ETA: "Kids" are 21 and 23 and filed their own taxes. They were dependents in 2018, DGD was a dependent in 2019 but DGS wasn't.

[Blonde Granny]

Even though Wells Fargo was supposed to get these deposited, mine is no where to be found. The last times I received a check, and our Government is a little weird....I get SS and VA disability and pay taxes, and still don't get anything until they mail me a check.

[justme]

Mar 17, 2021 10:27:46 GMT -5 Blonde Granny said:

Even though Wells Fargo was supposed to get these deposited, mine is no where to be found. The last times I received a check, and our Government is a little weird....I get SS and VA disability and pay taxes, and still don't get anything until they mail me a check.

The first one was deposited and I was in the first group. The second one I got a check and it took like two weeks from when it was approved to get. I'm assuming a check this time too since no deposit showing up, but the IRS website for info on the stimulus isn't working so who knows. 

[Happy prose]

minnesotapaintlady Maybe you know the answer to this one- in 2019, my husband and I filed jointly. The first 2 stimulus checks were deposited into his account, because that is the account we used for filing. For 2020 taxes, we are filing married filing separate. I filed already, he did not. Today, I got $1400 in my account that I used to file, BUT, my husband got $2800 in the account we used last year. So they kind of paid for me twice. How does he give back the $1400?

[tractor]

Mar 17, 2021 12:44:54 GMT -5 Happy prose said:

minnesotapaintlady Maybe you know the answer to this one- in 2019, my husband and I filed jointly. The first 2 stimulus checks were deposited into his account, because that is the account we used for filing. For 2020 taxes, we are filing married filing separate. I filed already, he did not. Today, I got $1400 in my account that I used to file, BUT, my husband got $2800 in the account we used last year. So they kind of paid for me twice. How does he give back the $1400?

I don’t think there is an easy way (from what I have read). Maybe there will be some additional guidance. I guess you can send a check back to the IRS, but who knows if they would even cash it.

[Happy prose]

Mar 17, 2021 13:35:51 GMT -5 tractor said:

Mar 17, 2021 12:44:54 GMT -5 Happy prose said:

minnesotapaintlady Maybe you know the answer to this one- in 2019, my husband and I filed jointly. The first 2 stimulus checks were deposited into his account, because that is the account we used for filing. For 2020 taxes, we are filing married filing separate. I filed already, he did not. Today, I got $1400 in my account that I used to file, BUT, my husband got $2800 in the account we used last year. So they kind of paid for me twice. How does he give back the $1400?

I don’t think there is an easy way (from what I have read). Maybe there will be some additional guidance. I guess you can send a check back to the IRS, but who knows if they would even cash it.

Do you think we should wait for them to contact us? 

[minnesotapaintlady]

Mar 17, 2021 13:42:08 GMT -5 Happy prose said:

Mar 17, 2021 13:35:51 GMT -5 tractor said:

I don’t think there is an easy way (from what I have read). Maybe there will be some additional guidance. I guess you can send a check back to the IRS, but who knows if they would even cash it.

Do you think we should wait for them to contact us? 

I really don't think you're going to have to pay that money back...if it makes you nervous just set it aside. 

[Happy prose]

Mar 17, 2021 13:47:50 GMT -5 minnesotapaintlady said:

Mar 17, 2021 13:42:08 GMT -5 Happy prose said:

Do you think we should wait for them to contact us? 

I really don't think you're going to have to pay that money back...if it makes you nervous just set it aside. 

Well that would be a beautiful thing! As long as I don't get in any kind of trouble for holding on to it.

[minnesotapaintlady]

Mar 17, 2021 13:52:07 GMT -5 Happy prose said:

Mar 17, 2021 13:47:50 GMT -5 minnesotapaintlady said:

I really don't think you're going to have to pay that money back...if it makes you nervous just set it aside. 

Well that would be a beautiful thing! As long as I don't get in any kind of trouble for holding on to it.

Everything I've read says you're fine.  I get it though, it probably feels like it's dishonest to keep the money or that they're going to come after you.  But I seriously would just sit on it and not stress.

If you received or are expecting to receive stimulus money based on your 2019 taxes, and are no longer eligible based on your 2020 income, there is no clawback provision in the law, so you won’t have to pay it back.

grow.acorns.com/stimulus-checks-coming-wednesday/