Dear Quentin, I am confused. My parents claimed me on their 2019 taxes (which was fine and agreed). However, I got married and filed my own 2020 taxes. When the third stimulus checks were issued, my parents had not yet filed their 2020 taxes, so they received stimulus money for me as their dependent (who are more than willing to give me).
The problem is, based on my 2020 taxes, I am not eligible for a third stimulus check because my husband and my combined income are over the limit. So the only reason I got the money was because the money was based on my parents’ 2019 taxes. Am I safe to spend the money? Or will the Internal Revenue Service want me to return it when the next tax season rolls around? Confused You can email The Moneyist with any financial and ethical questions related to coronavirus at firstname.lastname@example.org Dear Confused: Individuals earning less than $ 75,000 a year in adjusted gross income and their dependents would receive checks totaling of that total amount. Payments decrease for people earning $ 75,000 or more, and are eliminated entirely for people earning $ 80,000 or more and couples earning $ 160,000 or more in adjusted gross income. The $ 1,400 stimulus check is not a loan. This third stimulus check is an advanced tax credit on your 2020 taxes. If you don’t qualify based on your 2020 income tax return, the IRS will likely adjust it on your next refund and / or request payment. You could wait to see what the IRS does, of course, but that leaves you with another question: Should you return it? If you made enough money in 2020, it doesn’t seem right to keep it. Yes, many people received checks that they deposited in the bank or used to deposit on items that were not considered necessary. But they qualified for the economic impact payment, according to the rules. Here are some guidelines from the IRS on how to do it. If it feels like a tax stunt, give it back. The Moneyist: ‘I cut his hair because he doesn’t pay for a haircut’: My billionaire husband is 90 years old. I have cared for him for 41 years, but it does not help my son. Hello MarketWatchers. Take a look at Moneyist’s private FB Facebook group, + 1.50%, 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.