Recovery Rebate Credit for Adult Dependents

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cheapedy
Posts: 70
Joined: Mon Sep 19, 2011 2:44 am

Recovery Rebate Credit for Adult Dependents

Post by cheapedy »

My aunt Carol is a single 58 year old early retiree (not by choice) who owns her own home. Her sister and her husband live with her and pay the mortgage, property taxes and all utilities. They claim her as a dependent every year on their taxes. Carol did not receive a $1,200 stimulus check last spring because of it. She wants to know if there is a way for her to receive the current $600 payment. I'm aware of the recovery rebate credit, but is that only available for those who owe taxes as a credit?
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FiveK
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Re: Recovery Rebate Credit for Adult Dependents

Post by FiveK »

cheapedy wrote: Mon Jan 04, 2021 4:16 pm She wants to know if there is a way for her to receive the current $600 payment.
Not if she is eligible to be claimed as a dependent, regardless of whether she is claimed or not.
BogleTaxPro
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Joined: Sat Apr 04, 2020 6:08 pm

Re: Recovery Rebate Credit for Adult Dependents

Post by BogleTaxPro »

If she is not eligible to be claimed as their dependent, and files her own return, the credit is a refundable credit. She doesn't have to owe any taxes to get it.
Topic Author
cheapedy
Posts: 70
Joined: Mon Sep 19, 2011 2:44 am

Re: Recovery Rebate Credit for Adult Dependents

Post by cheapedy »

So if my aunt does her taxes for the 2020 tax year and reports $0 income, while her sister and husband do their taxes and DO NOT claim her as a dependent, then will she receive a check for $600?
123
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Re: Recovery Rebate Credit for Adult Dependents

Post by 123 »

cheapedy wrote: Tue Jan 05, 2021 2:20 pm So if my aunt does her taxes for the 2020 tax year and reports $0 income, while her sister and husband do their taxes and DO NOT claim her as a dependent, then will she receive a check for $600?
It is an issue of CAN she be claimed as a dependent, regardless of whether she is or not. Filing a tax return is not the controlling issue.

Form 1040 specifically asks if someone can claim you (the taxpayer filing the return) as a dependent.
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Nate79
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Re: Recovery Rebate Credit for Adult Dependents

Post by Nate79 »

Sounds like she is not eligible since she can be claimed as a dependent. And since 2020 is over it is too late to change that, what's done is done.
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