You’ve got questions, we’ve got answers. During our webinar about the Impact of Coronavirus on Paying for College, participants asked dozens of questions. Here are the answers to these questions on the stimulus check.
What about the 23-year-old who graduated in 2019, who was claimed as a dependent in 2019, but will NOT be able to be claimed as a dependent on the 2020 federal income taxes?
They are eligible for a recovery rebate, but they might not receive a stimulus check now. The recovery rebate is an advanced refund of a refund from your 2020 federal income tax return. Receipt of the recovery rebate check now depends on your 2019 federal income tax returns.
Because the IRS just sees that the student was claimed as a dependent on the 2019 federal income tax return, they don’t have any way of determining that the student will be eligible for the recovery rebate in 2020. Try visiting the IRS Get My Payment web site, but it doesn’t seem to be flexible enough to handle this situation.
However, when you file your 2020 federal income tax return, you’ll get the rebate as a tax credit on the 2020 federal income tax return.
Wouldn’t it be better for the parents to not claim the college student on their tax return and ergo the student could receive the $1,200?
Eligibility for the recovery rebate is based on whether the student can be claimed on someone else’s federal income tax return, not whether they are claimed. Thus, voluntarily not claiming the student on the parent’s federal income tax return will not make the student eligible for the recovery rebate.
If the student is under age 24, they are not eligible for the recovery rebate regardless of whether you claim them or not. The parents are also not eligible for the $500 if their student is 17 years old or older.
Mark Kantrowitz is a nationally-recognized expert on student financial aid, scholarships and student loans. His mission is to deliver practical information, advice and tools to students and their families so they can make informed decisions about planning and paying for college.
Mark writes extensively about student financial aid policy. He has testified before Congress and federal/state agencies about student aid on several occasions.
Mark has been quoted in more than 10,000 newspaper and magazine articles. He has written for the New York Times, Wall Street Journal, Washington Post, Reuters, Huffington Post, U.S. News & World Report, Money Magazine, Bottom Line/Personal, Forbes, Newsweek and Time Magazine. He was named a Money Hero by Money Magazine. He is the author of five bestselling books about scholarships and financial aid, including How to Appeal for More College Financial Aid, Twisdoms about Paying for College, Filing the FAFSA and Secrets to Winning a Scholarship.
Mark serves on the editorial board of the Journal of Student Financial Aid and the editorial advisory board of Bottom Line/Personal (a Boardroom, Inc. publication). He is also a member of the board of trustees of the Center for Excellence in Education. Mark previously served as a member of the board of directors of the National Scholarship Providers Association.
Mark is currently Publisher of PrivateStudentLoans.guru, a web site that provides students with smart borrowing tips about private student loans. Mark has served previously as publisher of the Cappex.com, Edvisors, Fastweb and FinAid web sites. He has previously been employed at Just Research, the MIT Artificial Intelligence Laboratory, Bitstream Inc. and the Planning Research Corporation.
Mark is President of Cerebly, Inc. (formerly MK Consulting, Inc.), a consulting firm focused on computer science, artificial intelligence, and statistical and policy analysis.
Mark is ABD on a PhD in computer science from Carnegie Mellon University (CMU). He has Bachelor of Science degrees in mathematics and philosophy from MIT and a Master of Science degree in computer science from CMU. He is also an alumnus of the Research Science Institute program established by Admiral H. G. Rickover.
The latest articles and tips to help parents stay on track with saving and paying for college, delivered to your inbox every week.
Thank you! You have been successfully subscribed to our email list.
Frequently featured in:
Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.
