REPAYMENT OF STIMULUS

Technical topics regarding tax preparation.
#1
Posts:
195
Joined:
21-Feb-2015 9:44am
Location:
College Station, TX
I have a client whose dependent child, a 21 year old college student, filed her own 2020 tax return claiming herself not to be a dependent of another, when she clearly was a dependent of her parents. She later got the first and second stimulus checks of $1,200 and $600. The child's parents filed their own 2020 tax return and did not claim the child or the education credit. Now, they want me to amend both returns to claim the child and the credit.

Question: When amending the child's tax return, in the payments section of the 1040-X, where it shows the $1,800 as a refundable credit in Column A, do I show a ($1,800) in the Net Change column, i.e. does the child have to pay this back if an amended return is filed?

I have heard that stimulus checks that were issued in situations like this do not have to be repaid,

Thanks.
 

#2
MilesR  
Posts:
725
Joined:
7-Dec-2021 11:10pm
Location:
California
Those darn kids... I guess you can amend it and leave off the credit and see if the IRS adjusts it or not.. although they'll probably want it paid back.
 

#3
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2611
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24-Jan-2019 2:16pm
Location:
North Shore, Oahu
I'm not sure of the best answer, sorry, but I would like to add that I have a talk with parents when their kids are 16 or 17 to get ahead of this typical situation.
 


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