Dear Quentin, We are having a discussion at our house about the latest stimulus payment. I declare that I am the head of the household and I have two adult dependents of 18 years that I claim on my taxes. I received a stimulus of $ 1,400 for each of us. My 18 year old son states that I must give him this money indicating that it is intended to be given to the dependent adult.
“’The problem with putting food in the cupboards: Some kids think it magically appears there. And I don’t just mean that food is evoked by some existential act of accounting. “- The Moneyist
The problem with putting food in the cupboards: Some believe that it appears there by magic. And not only do I mean that food is evoked through some act of existential accounting, but it actually passes from grocery bags to cupboards without any human intervention. It takes time to earn the money, buy and store that food. As a dependent adult over the age of 16, your child did not qualify for the first two stimulus checks. However, under President Biden‘s $ 1.9 billion American Rescue Plan, parents can claim their adult children as dependents. The amount is based on your income (payments are reduced for people earning $ 75,000 a year and more and couples earning $ 160,000 a year or more). The $ 1,4000 is not based on your child’s circumstances and as such the money should be used at your discretion. However, if you can afford it, I suggest that you discuss your child’s priorities and work with him on how he might spend all or part of the $ 1,400. You may be able to help your child feel empowered to spend it on his or her own support. But, and this is a big “but”, if he wants you to buy what you need while he uses the money for his own enjoyment, that is called “pocket money“, not an economic impact payment, and that is something that it is given to him when he is a child or needs to earn a living. If you decide on a possible compromise, the final answer will be determined by your child’s own financial priorities. The Moneyist: I am a farmer in my early 30s, I live a frugal lifestyle, and my son has a disability. Should I pay more on my mortgage or save for retirement? Hello MarketWatchers. Take a look at Moneyist’s private FB Facebook group, -1.34%, where we look for answers to life’s thorniest money problems. Readers write to me with all kinds of dilemmas. Post your questions, tell me what you want to know more about, or comment on the latest Moneyist columns. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, on all media and platforms, including third parties.