I graduated from college in May 2019 and started my first full time job in August 2019. I filed my 2019 Income Taxes in February and reported that my parents claimed me as a dependent because they paid for more than half of my 2019 expenses. 2020 is the first year that I will not be considered a dependent. Am I going to miss out on getting the $1,200 stimulus check since my parents claimed me in 2019?
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2You may have to wait for an answer until the bill actually becomes law. It passed the senate but could still get held up or revised in the house. At this point everything is conjecture and hear-say until we get the actual text of the bill.– NosjackCommented Mar 26, 2020 at 17:49
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2I'm voting to close this question as off-topic because we can't answer it definitively; any attempted answer would be speculation– yoozer8Commented Mar 26, 2020 at 18:00
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1The house is scheduled to vote on it in about 16 hours, though, and the House Speaker has said it'll pass, and the President has said he'll approve it. So it seems like it's a reasonable question to ask at this point, even if a potential answerer would want to wait until tomorrow morning to do so.– Ian DunnCommented Mar 26, 2020 at 19:31
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2To @yoozer8 and the close voters: If your only reason for voting to close is that this won’t be definitively answerable until tomorrow, please don’t.– Ben MillerCommented Mar 26, 2020 at 20:08
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2@BenMiller-RememberMonica - thanks, Ben! Agreed. Question is fact-based, answerable in a day or two, if not now.– JTP - Apologise to Monica ♦Commented Mar 27, 2020 at 12:44
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2 Answers
There are two parts to the recovery rebate: the tax credit for the 2020 tax year, and the advance tax credit as a check, determined by your 2019 tax return (or 2018 if you haven't filed for 2019).
Since you put on your 2019 tax return that you can be claimed by someone else as a dependent, you will not get the check. However, if you cannot be claimed by someone else as a dependent (note: it's "cannot be claimed", not just "are not claimed") for 2020, and you otherwise qualify for the payment (e.g. meet the income requirements), you qualify for a tax credit when you file your taxes for 2020 in 2021. The tax credit is reduced by the amount of the check you got, and since you didn't get a check, you qualify for the full tax credit.
answered Mar 30, 2020 at 17:57
On a podcast I heard yesterday, the Nevada tax commissioner joined and said the tax credit will ultimately depend on the 2020 return filed in 2021.
To distribute money now, they will go on the last filed return, e.g. IRS has my 2018 return. They'll base my credit off that. When I file in April 2021, for 2020 income, it will reconcile. The result can remain the same, I can lose the credit I got, or get the credit I didn't qualify for.
Listen to this Podcast (it's called the Daily Beans) and you can decide if I missed anything. (To save you time, the interview begins at 51 minutes into the show)
answered Mar 28, 2020 at 12:22
JTP - Apologise to Monica♦JTP - Apologise to Monica
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"I can lose the credit I got" Actually, according to the text of the law, you cannot lose the amount that you got. The tax credit for 2020 is reduced by the amount of the check you got, but it cannot be reduced below 0. So if you got more in the check (based on 2019 or 2018) than the credit you qualify for in 2020, you simply get 0 credit for 2020, but you keep the extra amount. Commented Mar 30, 2020 at 17:29
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I'm not sure this is accurate. The text of the bill says it's effectively a credit against tax paid in 2018 or 2019. There is some vagueness about what year is the benchmark year for AGI, but my read of (6428 (f)(2) is that it is tied to the relevant tax year (2018 or 2019).– EricCommented Mar 30, 2020 at 21:31
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I repeated what I thought I heard on the podcast. I took the speaker is reputable. Do you feel I misunderstood her? That she was mistaken? Or did you not listen to it? Commented Mar 30, 2020 at 21:34
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@JTP-ApologisetoMonica I'm listening to it now, but I'm comparing what you're saying to the actual text of the law.– EricCommented Mar 30, 2020 at 21:35