EIP3 Question

[artp]

Working on parent's 2021 return on extension and 18 year old daughter received $1400 check from IRS, but no 1444-C or any other documentation. Daughter did not file 2021 tax return, has always been claimed by her parents in prior years and will be claimed again in 2021. She had a summer job and got a W-2 for $425 and no taxes were withheld. Parents got total of EIP3 for $5600 for husband, wife and the 2 children. Do not know why the daughter got the $1400. Is the daughter required to return the money to IRS? 

[cbslee]

There was another thread about this earlier this year, saying that a number of young adults used the Non Filers tool so that they could get the $1,400.

[Terry D EA]

If I remember correctly, when all the laws surrounding the EIPs, no provision was made that allowed the IRS to collect on errors. Now, I could be seriously wrong here. I am still in possession of the first EIP for my deceased mother. Of course, the check is void now as it has been well over a year. However, no communications from the IRS looking for that payment. I have always wondered if the same applies to those who received the EIP2 & EIP3 in error. For what its worth, if the client has spent the funds or has cashed the check, I would tell them to watch for a letter. There is no provision in any tax software to include an overpayment or payment in error on the client's tax return. Please correct me if I'm wrong.

[artp]

Terry D

My concern is that the daughter must have done something to get the $1400 check.  She insisted that she di NOT a tax return and did not go online to request the EIP. I have requested a transcript just to see what (if anything) is in her record and whether she claimed herself before I file the parent's return and claim her as a dependent to get the $500 tax credit.

[cbslee]

1 hour ago, artp said:

Terry D

My concern is that the daughter must have done something to get the $1400 check.  She insisted that she di NOT a tax return and did not go online to request the EIP. I have requested a transcript just to see what (if anything) is in her record and whether she claimed herself before I file the parent's return and claim her as a dependent to get the $500 tax credit.

Then this might be a sign of identity theft.

[Terry D EA]

cbslee, I would agree but the OP said the daughter received the payment just not the letter. Following to see how this comes out.

[cbslee]

On 8/4/2022 at 5:55 AM, artp said:

Terry D

. . .  She insisted that she di NOT a tax return and did not go online to request the EIP. .. 

This is why I posted about potential identity theft

[grandmabee]

19 hours ago, cbslee said:

This is why I posted about potential identity theft

But she got the money.... I could see if she received the letter and no check.  Why would identity theft send the money to the correct person holding the SSN.

[Pacun]

Follow the dependent rules and file accordingly.  Don't worry about the $1,400 because that's based on years and/or issues that don't have anything to do with the parents' return. 

Identity theft will not change the facts on 2021 parents' return either.