Is there a hole in the direct payments plan concerning young adults who live with their parents?

[SlackerInc]

I have read every detailed article I can find about this, and ISTM that if you have a 17 year old living with you, you’ll get $500 for them. But if they are 18 or 19 (or older) and live with you and are claimed as a dependent, no one will get anything for them, neither they nor you. That seems unfortunate if so.

[Lord_Feldon]

Yes, there’s a hole. I think it actually kicks in at 17 rather than 18 (the child tax credit only applies for kids who are 16 or under).

[SlackerInc]

That would be even dumber, but that part’s definitely ambiguous. I haven’t seen the text of the law, which I assume is precise; but the articles refer to “under 17” and many people, including journalists, may use that as a sloppy way to say “less than or equal to 17 years of age”. It also doesn’t specify at what date their age matters. My eldest daughter will be turning 17 in April, so one would think that the fact that they are already starting to work on sending checks means she’s definitely okay. But this is technically an advance on a future tax credit, and when 2021 taxes are due she’ll be 17 (almost 18).

Was this an oversight because of the rush job, or was it somehow intentional?

[Alley_Dweller]

@SlackerInc

That would be even dumber, but that part’s definitely ambiguous. I haven’t seen the text of the law, which I assume is precise; but the articles refer to “under 17” and many people, including journalists, may use that as a sloppy way to say “less than or equal to 17 years of age”. It also doesn’t specify at what date their age matters. My eldest daughter will be turning 17 in April, so one would think that the fact that they are already starting to work on sending checks means she’s definitely okay. But this is technically an advance on a future tax credit, and when 2021 taxes are due she’ll be 17 (almost 18).

Was this an oversight because of the rush job, or was it somehow intentional?

The law says that only children who are eligible for the Child Tax Credit are eligible for the $500 dependent credit. Your daughter becomes ineligible for the CTC the year she turns 17, even if she turns 17 on December 31.

Specifically IRC Sec 24(c):

The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17.

[Alley_Dweller]

CARES Act:

‘‘(a) IN GENERAL.—In the case of an eligible indi-

23 vidual, there shall be allowed as a credit against the tax
24 imposed by subtitle A for the first taxable year beginning
25 in 2020 an amount equal to the sum of—
145
1
2

‘‘(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus

3

‘‘(2) an amount equal to the product of $500

4

multiplied by the number of qualifying children

5

(within the meaning of section 24(c)) of the tax-

6

payer.

Section 24(c):

(c) Qualifying child
For purposes of this section—
(1) In general

The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17.

IRC Section 152(c) (too long to quote here)

[SlackerInc]

That begs the question of why parents of 17 year olds don’t get the child tax credit.

ETA: In any case, that still doesn’t explain why someone like my 20 year old son doesn’t qualify for either type of credit. He’s still living in the world, using resources, like everyone else.

[Loach]

@SlackerInc

That begs the question of why parents of 17 year olds don’t get the child tax credit.

ETA: In any case, that still doesn’t explain why someone like my 20 year old son doesn’t qualify for either type of credit. He’s still living in the world, using resources, like everyone else.

Why doesn’t he qualify?

[PastTense]

@SlackerInc

ETA: In any case, that still doesn’t explain why someone like my 20 year old son doesn’t qualify for either type of credit. He’s still living in the world, using resources, like everyone else.

If he had a job and filed an income tax return he should get it directly.

[Loach]

@PastTense

If he had a job and filed an income tax return he should get it directly.

Yes I have seen nothing that says different. I’m not getting a penny but my 20 year old daughter should be getting $1200.

[shellofmyformerself]

My daughter is 18 but still in high school and still lives with me (she graduates in May). She does not work. Neither of us will be getting anything which is ok with me because I’m able to telework so I’m lucky enough to still be getting full pay. What about those in my situation (over 17 child at home they provide 100% support for) who aren’t still getting paid? Why shouldn’t they be eligible?

[PastTense]

However, the plan excludes anyone who isn’t a child and who can be claimed as someone else’s dependent. Who is in that group? Some high-school students, college students and some disabled and elderly people, many of whom show up on the tax returns of the people they live with who provide most of their support…

They won’t get money directly, and no one will get money for them. In all, that is about 21 million Americans, according to the Tax Policy Center. Immigrants who don’t have Social Security numbers also aren’t eligible…

Parents and adults who have those dependents will still be able to claim the $1,200 for themselves. They just won’t get an additional $500 for each of those dependents. “Dependents, by definition, aren’t responsible for a majority of their financial support,” said Michael Zona, a spokesman for the Senate Finance Committee, which wrote the legislation. “The goal of the recovery rebates is to provide support for Americans who are responsible for their own financial well-being or that of another during this pandemic.”…

The definition of who gets $500 is similar to the one that is used for annual tax credits to create a distinction between children under 17 and others. Lawmakers based this week’s bill on similar payments made in 2008, which also excluded the same group of non-child dependents.

http://archive.is/UBKQj

So there definitely is a hole OP.

[actualliberalnotoneofthose]

My son is 18 and made around $2000 across 3 part time jobs in 2019 (first year working and first filing taxes). Of course, we claimed him since the 2 grand wouldnt even cover his share of food or utilities.

So, he’s a dependent who filed taxes and also not a “child” by any weird IRS definition. Does he get $1200?

[Alley_Dweller]

@actualliberalnotoneofthose

My son is 18 and made around $2000 across 3 part time jobs in 2019 (first year working and first filing taxes). Of course, we claimed him since the 2 grand wouldnt even cover his share of food or utilities.

So, he’s a dependent who filed taxes and also not a “child” by any weird IRS definition. Does he get $1200?

If you are a dependent, you don’t get a stimulus payment. Period.

If you have a child who has not reached their 17th birthday who is your dependent, you get an extra $500 stimulus payment in addition to whatever other credits you may have gotten before this bill passed.

If you have a child who has reached their 17th birthday who is your dependent, you get nothing more than what you would have gotten before this bill passed.