So I graduated college in 2021 and based on discussions with my parents they are not going to claim me as a dependent for the 2021 tax return, but they did for 2020 and 2019, I'm not sure which year was actually pulled for their 3rd impact payment. Based on this, I believe I may be eligible for the 2021 Recovery Rebate Credit, despite my parents already receiving money for me with the 3rd payment. This IRS page says the following about previous dependents:
Q C9. Dependents: I didn’t receive the Economic Impact Payment because I was claimed as a dependent on someone else’s 2020 return. Can I claim the Recovery Rebate Credit if I’m not a dependent in 2021? (added January 13, 2022)
A9. Maybe. If you were claimed as a dependent on someone else’s tax return for 2020, you were not eligible for the third Economic Impact Payment. If no one can claim you as a dependent for 2021 and you are otherwise eligible, you can claim the 2021 Recovery Rebate Credit on your 2021 tax return.
Married persons who didn’t receive the third Economic Impact Payment should determine their eligibility for the Recovery Rebate Credit when filing their 2021 tax return. You and your spouse can’t be claimed as a dependent on someone else’s return for the 2021 tax year if you claim the 2021 Recovery Rebate Credit on a joint tax return that you and your spouse file together. See Joint Return Test PDF under Dependents in Publication 501, Dependents, Standard Deduction, and Filing Information.
If you file electronically, the tax preparation software will help you figure your 2021 Recovery Rebate Credit. Visit IRS.gov/filing for details about IRS Free File, Free File Fillable Forms, free VITA or TCE tax preparation sites in your community or finding a trusted tax professional. The Recovery Rebate Credit Worksheet in the 2021 Form 1040 and Form 1040-SR instructions can also help calculate the credit.
My main questions are:
- Can I legally claim this credit?
- If I do claim the credit, will they attempt to recover the money from my parents?
For more context I am single filing for 2021 and taking the standard deduction