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The college student’s son underwent three stimulus checks. I am a dad trying to teach ethical behavior. What should we do?

Dear Quentin,

Our dependent college student has received three incentives so far, but he may not be eligible. He deposited them, but didn’t spend any money. Does he need to return them?

He filed taxes because he has 529 college savings plans in his name. Other than that, he has no reportable income. We have confirmed that his tax return clearly states that his parents, who are third parties, claim that he is a dependent.

If he shouldn’t have received the money, how can I get it back?

Thank you very much.

Dad trying to teach ethical behavior

Want to read more?Follow Quentin Fottrell twitterRead more of his column here.

To dad

There is no doubt that you have already set an example, taught and guided.

Make sure this is not COVID-related financial assistance sent directly from his college to your son. If not, you are right: if your son relied on an adult over the age of 16, he was not eligible for the first two stimulus checks. However, under President Biden’s $ 1.9 trillion US rescue program, dependent students could be completely stimulated.

This time, dependent students such as sons and independent students, including college graduates and undergraduates over the age of 24, will receive the full $ 1,400 if their annual income is $ 75,000 or less.

“”
If your son is claimed to be an adult depending on your taxes, you should receive payment on his behalf.

In the first stimulus check last year, dependent parents under the age of 16 were entitled to a $ 500 payment. That number rose to $ 600 in the second round of economic stimulus. In the third batch, adult dependents can qualify for the full amount ($ 1,400).

Payments for the latest economic stimulus will be reduced for individuals with incomes of $ 75,000 or more and will be completely phased out for couples with incomes of $ 80,000 or more and adjusted gross income of $ 160,000 or more.

This third stimulus check is a prepaid tax credit for the 2021 tax, which is calculated based on the 2020 tax or the 2019 tax if 2020 is not available. On top of that, if the 2019 submission is made in good faith, there is no clawback clause for the third incentive payment.

“Basically, as long as the tax return used to determine eligibility is submitted in good faith, the case will be closed when the stimulus check is paid,” said Alpharetta’s Merit Financial Relationship Manager. Chad Lange, also and financial planning coordinator, said. Ga.

“”
If both of you have a stimulus check for your son, you’re right, it’s too many checks.

“If a taxpayer receives a stimulus fund based on a 2019 tax return, the IRS will be able to recoup that amount if the taxpayer later submits a 2020 tax return. You can’t reduce your refund, “he says.

But, as you say, if your son is claimed to be an adult depending on your taxes, you should receive payment on his behalf.If Both You received your son’s check, you’re right, it’s too many checks. The IRS provides some guidelines Here How to return an incorrect refund.

I have received hundreds of letters from uninspired people, and many in situations like you.People also have their checks Unpaid child supportOther taxpayers Dead relatives.. It’s been quite a year.

Regarding being a dad who teaches ethical behavior, my suggestion is to explain who is and is not eligible to pay the stimulus, and struggle to put food on the table and pay the rent. Pointing out that he was sent to help his family, what his son thinks he should do.

His answer may surprise you after he gives it some thoughts.

You can email The Moneyist financial and ethical questions related to the coronavirus at qfottrell@marketwatch.com.

Moneyist: “I cut his hair because he doesn’t pay for a haircut.”: My millionaire husband is 90 years old.I have taken care of him for 41 years but he does not help my son

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The college student’s son underwent three stimulus checks. I am a dad trying to teach ethical behavior. What should we do?

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