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Home / Tips and Tricks / Who counts as dependent on your taxes and what could that mean for your stimulus testing?

Who counts as dependent on your taxes and what could that mean for your stimulus testing?



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If you claimed dependents on your 2019 tax return, you should have received $ 500 per dependent on the first round of stimulus reviews.

Sarah Tew / CNET

If the White House and Democratic Negotiator can soon come to an agreement, eligible American adults could see a second round of Coronavirus Stimulus checks received by the end of 2020 up to $ 1,200 by check, direct deposit or Economic Impact Payment Debit Card. For the first stimulus testAmericans with dependents aged 16 and under received an additional $ 500. When Congress passes a new one Coronavirus relief billsThe relatives you claim can still be offset against your family’s total payment in a second check, with some changes. (Find out How old do your relatives have to be to receive their own stimulus check here?.)

But who exactly qualifies as dependent? How are you bound to your tax return? And would they actually count towards the amount of the check you would receive? This is where it gets tricky, but we’ll break down what you should know and how to find answers.

It is still unconfirmed who would be eligible or not – and it will remain so – until another stimulus check arrives, either through another invoice or an executive order. (Here is how soon another check could come after it’s over.)

Read on for everything you need to know to find your loved ones on your tax return and how that could affect the amount you would get with a second boom. You can also find out how to benefit your loved ones when they are I did not receive the $ 500 for your loved ones on the first stimulus check.

Who does the government count as dependent?

For tax purposes, a dependent can fall into two categories: a qualified child or a qualifying relative. They don’t have to be children or be directly related to you, but they do need to meet certain requirements from the IRS.

To claim a qualified child as subject to your taxes, they must either be under 19 or under 24 at the end of the calendar year. However, if your child is labeled “permanently and completely disabled” by the IRS, you can claim them to be dependent regardless of their age.

To claim a qualified relative, be it a child or an adult, as a dependent, they must meet other IRS criteria. This may include an elderly relative who will rely on you for care.

Even if a loved one was claimed on your tax return, they may not have been eligible to receive money from the first round of stimulus checks due to the requirements of the CARES Act. However, it is likely that some requirements will change when a different invoice is submitted.

Where can I find out how many relatives I have listed on my tax return?

If you filed taxes in 2018 or later, you can find your loved ones on Form 1040 (US Individual Income Tax Return). In the middle of the first page, you’ll see a box labeled Dependents. There your loved ones will be listed along with their Social Security number, their relationship with you, and whether they are eligible for a child tax credit or other loved ones credit.

1040

Find your dependency on your 2019 Tax Form 1040.

IRS

How much money could I get for my loved ones if a second incentive payment is approved?

The first boom under the bipartisan CARES bill passed in March included $ 500 for dependents 16 and under. According to the Tax Foundation, there was no limit to the number of children who could be considered dependent as long as they were 16 years or younger and claimed by the taxpayer on their tax return.

As another stimulus package has not yet been passed, we do not know exactly how much money would be made available for relatives. Under the Republican support HEALS ActYou would get $ 500 per loved one with no limit on the number of loved ones who could receive that money. The Democratic-Backed Heroes Act gives you $ 1,200 per dependent for up to three people. Both bills would provide for these payments to dependents regardless of age, including college students and adult dependents, including potentially elderly relatives, who depend on you for care.

The amount of money you would get on a second stimulus payment depends on yours adjusted gross incomewhich you can also find on your taxes. Check out our story how to calculate how much money you could get in a second check.

What if I now have more relatives than in my last tax return?

If a child was born in 2020 or was taken into your family and therefore is not listed on your 2019 tax return that you filed that year, you can claim it on your 2020 tax return in order to claim those from sometime in 2021 Receive $ 500 contingent incentive payment under the CARES Act This would likely be the case if a second stimulus test is also approved.

You can also use this tool from the IRS to find out if you can claim a child or other relative as dependent on your taxes.


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How does it work if I am divorced or legally separated from my spouse and share custody of a dependent?

A child can only be claimed as dependent for one taxpayer for a tax year. As a rule, the child is considered to be dependent on the caring parent – the parent with whom the child lived for a long period of time during the year, even if the financial support came from the other parent. However, this is not always the case. You can find more information about the IRS here.

What if my spouse and I share a child but file taxes separately?

In this case, a child can still only be claimed as dependent on a tax return in one tax year. To find out who should claim the child upon return, read the IRS information on the Qualified Child of More than One Person.

What if my loved one dies?

If a dependent was listed on your most recent tax return but has since passed away, you likely still received the additional $ 500 and that would be included in a second stimulus payment. However, a payment to someone who died prior to receiving it should be returned to the IRS. You also can’t claim a stillborn child as a dependent, according to the IRS.

More information can be found here if you are qualified for a second stimulus test and when you can expect a second stimulus check. If you haven’t received an initial stimulus check yet, you can do so Track the status of your stimulus check, learn How to report your missing check to the IRS and find possible Reasons why your stimulus check has not yet arrived.


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