Jett and Cole are divorced, and each year they alternate who claims their five-year-old son Ed on their returns. In 2018, Jett claimed Ed as a dependent.
Assuming both of their incomes are below the threshold amount, if Jett doesn’t file a 2019 return before the economic impact payment is issued, he’ll receive $1,700 based on his 2018 filing, which is the $1,200 plus the $500 for Ed. If Cole files her 2019 return, she’ll also receive $1,700.
Unanswered question: We don’t know if the IRS will deny the dependent credit to Cole if Jett received the refund for that dependent already.
Subscribers to Spidell’s Federal Taxletter or Spidell’s Online Research Package can read the full article here >> https://bit.ly/ORP-Economic-Impact
