Ais moving in the right direction as the House of Representatives approved the . If signed into law, and their of any age would qualify to receive a — and yes, that includes those aged 17 to 24 who were left out of the . If things stay the same, the new stimulus check will remain on track to be sent out as early .
What’s new with this bill,, is that it changes the , making people of all ages eligible for a check. So how does that affect you if you’re between the ages of 27 and 24, or an who is someone else’s dependent? Could you get your own $1,400 check, or will it go toward your family’s overall amount? Could ? While all dependents could possibly qualify for a payment, you likely won’t get that money as a check of your own.
Each situation is different, but we’ll help explain what it means for you — whether you’re a student, living on your own and are employed, if you’re in the military, if you receive, if you’re married or a parent, or if you’re . And since is here, we can explain how some young adults could of up to $1,200, as well as the second stimulus payment of . This story was recently updated.
Am I counted as an adult or as a dependent for stimulus payments?
The first stimulus payment sent out under the Marchallocated up to $1,200 for qualifying American adults, and $500 for the — so long as they were age 16 or younger. The , which the IRS finished sending out Jan. 15 under the December , allocated up to $600 per qualifying American adult and $600 for the dependents listed on their 2019 tax returns who were age 16 or younger at that time. While the amount of money changed from the first check to the second, the rules for who qualified as a child dependent did not.
To qualify for your own second stimulus check, you need to have filed your 2019independently, which means no one else claimed you on their taxes as a dependent. You also had to have an , of under $75,000 to receive the full amount. (The , and this time around, , you aren’t eligible for a check.)
There are two different sets of rules for who counts as an adult or a dependent under current tax law, according to, a senior fellow at the .
One is the support test. If you’re unmarried, you don’t claim children as your own dependents, your parents provide you with financial support equal to or greater than half of your annual income and you made less than $4,200 in 2019, then your parents can still claim you as their dependent. Another is the residency test: If you’re a full-time student under the age of 24 who resides with an adult taxpayer more than half of the year (unless you’re living on a college campus), you can be claimed as a dependent, no matter how much money you make.
The IRS will likely use eitherto determine your , if one is passed — whichever is on file more recently. We recommend and so the agency has your most recent information on file — especially if 2020 was the first year that you were financially independent, and no longer counted as a dependent. (Find out what else you need to know about what will happen , and .)
Why weren’t young adults eligible for the first and second stimulus checks?
People aged 17 through 24 were excluded from the CARES Act and the $900 billion bill because of aof “child” that states a “qualifying child … has not attained age 17.” That means even 17- or 18-year-old high school students who clearly lived with a parent or guardian were excluded as dependents and weren’t counted for a $500 or $600 addition to the family check.
The reason for this age cutoff has to do with the, established in 1997, which allows parents to receive up to a $2,000 tax refund for each child under the age of 17 each year they file. We can only speculate as to why this definition wasn’t expanded to include young adults, but the reason is probably the additional cost to the federal government of extending the credit to more people, Holtzer said.
This group was likely excluded from the second stimulus check to keep costs down. However,includes in a third stimulus check.
Are there any instances where a 17- to 24-year-old would qualify to get their own stimulus check?
It depends. If you became financially independent in 2020, and you file your 2020 tax return in spring 2021 independently, you’ll receive the first stimulus check of up to $1,200 and the second check of up to $600 sometime in 2021 on your tax refund, Holtzer said. All you have to do is file your tax return for 2020 and claim the money as, so long as you meet the regular eligibility criteria for a stimulus payment.
If you’re filing taxes independently, the amount of money you would get in a second stimulus payment would depend on your, which you can also find on your taxes. Check out our story on . But if a parent or guardian claims you as a dependent on their taxes, you won’t get a check of your own. And if you’re in that 17-to-24 age range, you likely won’t get any money allocated toward your family’s payment, either.
For a, if you’re in the 17-to-24 age range and listed as a dependent, you will be of (assuming the current proposal becomes law). However, that money will be added on to your family’s total, unless one of the situations below applies to you.
What about if someone claims you as a dependent on their taxes, but you work or attend college?
Even if you work or go to college full-time (or both), you still count as a dependent if you meet either the support test or the residency test mentioned above. Basically, if you rely on your parents or guardians for more than half of your financial support, if you made less than $4,200 in 2019 or you’re a full-time student under age 24 who resides with a parent or guardian while not in school, or both, you likely still meet the requirements to count as a dependent.
However,, too. Income for dependents falls into two categories: earned income (money earned from working) and unearned income (money earned from investments like the stock market). Those requirements for filing are based on income, so if dependents are receiving either earned or unearned income, they will need to file a tax return or their parents will need to file a tax return for them.
Are you eligible for a payment if you’re considered an emancipated minor?
If you’ve been emancipated from your parents by a court or through marriage (state laws apply in both cases), you likely wouldn’t count as anyone’s dependent (assuming you provide more than half of your own financial support and don’t live with your parent or guardian anymore), and would file taxes independently. So you’d be eligible for your own stimulus check if you met the requirements.
Are you eligible if you’re currently enlisted in the US armed forces?
If you’re age 17 or older and have enlisted in the US armed forces, you’re considered emancipated from your parents or guardians and would file taxes independently. Therefore, you would be eligible for your own stimulus check if you met the requirements.
What if you’re younger than 24 but married or have a child?
If you’re under age 24 and are married or have a child of your own whom you claim as a dependent, you’re considered independent by the IRS. Therefore, you’d be eligible for your own stimulus check if you meet the requirements.
What if you pay or receive child support? Are you eligible?
Typically, the custodial parent is the one who claims the child on their taxes, while the noncustodial parent pays child support. There are some cases where yourto help pay your child support. If you owe more than $150 in overdue child support (called arrears), your state may reserve the right to garnish some or all of your first stimulus check, based on how much you owe. If you’re owed child support, you may receive money garnished from your child’s other parent, though it may take a while to get to you after it is processed by the state.
For parents who have joint custody, it’s possible that both could get an extra $500 per child dependent as part of their check. It may be the case again with the $600 per-child payment. Find out.
Do SSI or SSDI recipients qualify for a payment?
If you’re a young person who is part of the, things can get complicated when it comes to stimulus payments. Here are three different circumstances people who receive these benefits may face, and how it might work for you, according to Holtzblatt:
Scenario 1: You are a full-time student and live with your parents for more than half the year (you’re considered to be living at home even if you live in a dorm part of the time). You could be claimed as a dependent by your parents, and therefore would not be eligible for a stimulus payment under the CARES Act and the December stimulus bill.
Scenario 2: You are not a student, but receive more than half of your support or living expenses from your parents or others (like grandparents). If you meet certain other criteria, the person providing support, and therefore you would not be eligible for a stimulus payment under the CARES Act or the December stimulus bill.
Scenario 3: More than half of your support/living expenses are paid by your SSI or SSDI check. As long as you’re not a full-time student or living at home, you cannot be claimed as a dependent, and thus would be eligible for a stimulus payment under the CARES Act. If that was the case for you, you should have received your first check automatically. The same was true for a second check.
Another question we don’t have the answer to is, how extensive was the IRS’ verification process for eligibility? The agency knew who received Social Security benefits, at least as of a certain date. But we don’t know if the IRS was able to identify who among those people was a dependent of another taxpayer when the payments were distributed, Holtzblatt said.
We also don’t know how this will play out for ayet.
Find out more about.
What can I do if the IRS made a mistake?
Millions of people didn’t receive their second stimulus check due to. At this point, to claim any missing money, you’ll have to file a claim with the IRS during the upcoming that runs through (though lawmakers are trying to ). Here’s everything you need to know about the you’ll need to claim on your taxes, and, for certain cases, .
For more information, find outand .