File a Corrected Return to Claim $500 Benefit for Dependant Kids?

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eeyore
Posts: 32
Joined: Tue Mar 19, 2013 6:45 pm

File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by eeyore » Sun May 10, 2020 12:43 am

I'm a U.S. citizen living in Canada. Each year when I file my tax return with the IRS, I don't normally declare my two kids as dependants, since I don't need those credits to bring my taxes down to nothing. I file as married filing separately, since my husband in not a U.S. citizen.

Yesterday, I received my Covid impact cheque for $1200.

I just learned that I probably should have been eligible for $500 for each of my two dependant children. If I file a corrected return, will that trigger an additional payment? On which year's tax return are these payments based?

eeyore
Posts: 32
Joined: Tue Mar 19, 2013 6:45 pm

Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by eeyore » Sun May 10, 2020 1:09 am

I just checked, and I did actually declare my two kids in the Dependents section for my 2019 Form 1040, although the Child Tax Credit worksheet resulted in a zero value recorded on line 13a of Form 1040.

So is the benefit for dependent kids on a separate check, or was it based on the 2018 return?

nelsona
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Location: Nowhere, man

Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by nelsona » Sun May 10, 2020 6:37 am

If iRS had determined that you were eligible for the $500 per child, it would have been included in the single payment. You will need to check with IRS as to why you did not get the additional amount.

As to the child tax credit CTC (which might explain things) do they have SSN's? And did you ask for the Additional tax credit (ACTC), which is later on the return? Usually if one has eligible children, but gets reduced or no CTC, they can claim ACTC.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

eeyore
Posts: 32
Joined: Tue Mar 19, 2013 6:45 pm

Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by eeyore » Sun May 10, 2020 9:06 am

Yes, both kids have SSNs, which were recorded in the Dependents section at the beginning of my 2019 Form 1040.

I was unaware of the ACTC, probably because my tax situation would have derived no benefit from it. It still seems odd that it wasn't enough to simply base my eligibility on the declaration in the Dependents section.

I still wonder, though, whether they based it on my 2018 return. (The IRS notified me that they had accepted my 2019 return on April 4, 2020.) I haven't been able to check my 2018 return to confirm whether I declared my kids as dependents there.

But I'll need to contact IRS, I guess.

Thanks!

nelsona
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Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by nelsona » Sun May 10, 2020 12:09 pm

Cdn children with ITINs can be considered dependents. That is why I asked if they had SSNs.
Your check was based on 2018 return.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

eeyore
Posts: 32
Joined: Tue Mar 19, 2013 6:45 pm

Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by eeyore » Tue May 26, 2020 8:48 am

IRS says that these Economic Impact Payments are not taxable in U.S.

Does anyone know if they are CRA-taxable for a U.S. citizen living in Canada?

nelsona
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Location: Nowhere, man

Re: File a Corrected Return to Claim $500 Benefit for Dependant Kids?

Post by nelsona » Tue May 26, 2020 10:39 am

They shpuld not be taxable, however, they do reduce your US tax, which may reduce your Foreign tax credit, if you have US income.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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