Attention tax experts - need advice to get stimulous checks

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Topic Author
Startin'up
Posts: 21
Joined: Mon Jun 11, 2007 10:31 am

Attention tax experts - need advice to get stimulous checks

Post by Startin'up »

Guardian eligible for stimulous checks?

Though a volunteer mentorship program I am working with a seventeen year old. The basic scenario is this – he was taken from his mother by the county last October as a dependency and neglect case. Temporary custody was given to his grandmother and the county at that time. On Jan 7, 2021, the full custody order was granted to the grandmother and the county closed the case. He will be 17 throughout this year.

The grandmother and he both live in a house owned by his uncle (grandmother's son). Uncle filed his taxes for 2020 and claimed a deduction for his mother. Her income is so low (Soc Sec only) that she has not filed for years and has not received any stimulus payments herself - presumably because of that.

Anyway, my thinking is that, since the 17 year old is her legal ward and has been living with her since October, she should be eligible to receive any 2021 stimulus payments for a child. However, I am unsure how to file for her so that the legal gaurdianship paperwork makes that evident.

At this point I have three main questions:

1. Even if grandmother was cited as a dependent by uncle, should she be eligible for her own stimulous checks for both 2020 and 2021?
2. Is filing for 2020 enough or does she have to go back to 2019 too?
3. Are there special forms that can be filed with her taxes to indicate that she is now the guardian of a youth so that she might get stimulus checks for the child too?

I would prefer to simply help them file on-line if it's possible but don't mind going to a tax consultant to get the filing done if it's complicated. I mostly want to know if what I'm trying to do is reasonable – from the perspective of getting them some stimulus money.

There are a few complications that really make this difficult – grandmother speaks no english (US citizen) and does not understand how she might get some money from the government and, really, it is all beyond her capabilities to understand. The uncle works hard and pays taxes but doesn't understand it either. If I can convince them that this is possible, I'm sure they would be on board if I can guide them through it.

The estranged mother received a check from the feds in Feb, but I believe that was because the boy lived with her most of that year. She kept the money for herself. Fair enough, but I think all the 2021 child payments should go to grandmother.

So – if anyone out there is familiar with tax codes and forms and has any suggestions for me (or websites?) , I would appreciate it. I had some tax problems (never got my refund last year) and it took me four months and many calls to the IRS before finding someone who knew what they were talking about. I can't face it or trust it on this one.
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FiveK
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Joined: Sun Mar 16, 2014 2:43 pm

Re: Attention tax experts - need advice to get stimulous checks

Post by FiveK »

At a quick read, it appears both the grandmother and the nephew are dependents of the uncle for 2021, and the uncle will be the recipient of any Recovery Rebate Credit (for himself, his mother, and his nephew) not already received by stimulus check when he files his 2021 taxes.

Does that make sense?
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celia
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Location: SoCal

Re: Attention tax experts - need advice to get stimulous checks

Post by celia »

Startin'up wrote: Thu Sep 23, 2021 12:48 pm ….On Jan 7, 2021, the full custody order was granted to the grandmother and the county closed the case. He will be 17 throughout this year.
So, the child officially joined a new household in 2021.
The grandmother and he both live in a house owned by his uncle (grandmother's son). Uncle filed his taxes for 2020 and claimed a deduction for his mother.
In 2020, they were a 2-person household and the uncle probably received a stimulus payment for 2 adults.
1. Even if grandmother was cited as a dependent by uncle, should she be eligible for her own stimulous checks for both 2020 and 2021?
Probably, if she were to file a tax return for 2020. If her share was already given to the uncle, she could ask him for it. Filing won’t hurt her.
2. Is filing for 2020 enough or does she have to go back to 2019 too?
Same situation. She may have been claimed on uncle’s return.
The estranged mother received a check from the feds in Feb, but I believe that was because the boy lived with her most of that year. She kept the money for herself. Fair enough, but I think all the 2021 child payments should go to grandmother.
The 2021 child payments won’t be assigned to grandmother until she files a 2021 tax return next year.

This answers most of your questions:
https://www.freetaxusa.com/credit.jsp?i ... 669c422ad6

Another thing to consider is filing with the county child support services for some support like temporary foster parents get. If they already know of this case, she should already be getting monthly payments from them. But that will put her under government oversight, which some people would rather not have to deal with.
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gobel
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Joined: Mon Feb 08, 2021 3:50 pm

Re: Attention tax experts - need advice to get stimulous checks

Post by gobel »

Some clarifications:
  • The grandmother is a dependent of the uncle. She gets no stimulus check herself or for the grandson for 2020 or 2021 whether she files or not.
  • The grandson was 16 last year and his mom gets checks 1 and 2 for him if she met the income limits. She might have also gotten check 3 this year.
  • The uncle does not get a stimulus check for the grandmother for 2020 since she was not under 17, but should get it for her for 2021 (if he meets the income limits). He also might be able to declare the grandson as a dependent when he files next year and get a credit for him as well.
Topic Author
Startin'up
Posts: 21
Joined: Mon Jun 11, 2007 10:31 am

Re: Attention tax experts - need advice to get stimulous checks

Post by Startin'up »

Thanks to both for the comments. That gives me several avenues to pursue.
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