CAN A student CLAIM THEMSELVES TO GET THE REBATE RECOVERY CREDIT?

Forum|Forum|5 years ago
February 11, 2021
3 replies
14 views

Lacerte Tax

This topic has been closed for replies.

abctax55

Level 15

MAYBE... and there's no need to shout.

What do your CPE classes say about the situation?

HumanKind... Be Both

itonewbie

Level 15

Question is whether the student is a dependent of someone else. That's not a choice but a factual determination based on the statutes.

---------------------------------------------------------------------------------Still an AllStar

qbteachmt

Level 15

Perhaps it would help to review what is really happening:

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.

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