Dear Quentin: Our dependent son, a college student, has received three stimulus payments to date, to which we believe he may not be entitled. You have deposited them, but you have not spent the money. Do you need to return them? You filed taxes because we have a 529 college savings plan in your name. Other than that, you have no reportable income. We verify and your tax returns clearly indicate that a third party, your parents, is claiming you as a dependent.
“If your child is claimed as an adult dependent on your taxes, you must receive payment on your behalf. ”
The latest economic stimulus 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. It bears repeating: the $ 1,400 stimulus check is not a loan. This third stimulus check is an advanced tax credit on your 2021 taxes and is calculated based on your 2020 taxes. You could wait to see what the IRS does, of course, but that leaves another question: Should you pay it back? Yes. And, therefore, how? If your child is claimed as an adult dependent on your taxes, as you say, you must receive the payment on your behalf. If you and he have received a check for your son, you are right, it is too much. Here are some guidelines from the IRS on how to return an erroneous refund. I have received hundreds of emails from those who have not received their stimulus payments and many like yours. People have also said their checks were garnished for unpaid child support, while some taxpayers say they have received stimulus checks for dead family members. A whole year has passed. As for being a parent who teaches ethical behavior, my suggestion is to explain who and who does not qualify for the stimulus payments, point out that they were sent to help families who were having a hard time putting food on the table and paying rent, and ask son what he thinks he should do. After thinking about it for a bit, his answer may surprise you. You can email The Moneyist with any financial and ethical questions related to the coronavirus at email@example.com The Moneyist: ‘I cut your hair because you don’t pay for a haircut’: My billionaire husband is 90 years old. him for 41 years, but he won’t help my son. Hello MarketWatchers. Take a look at Moneyist’s private Facebook FB group, + 7.30%, 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.