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Stimulus control: who counts as an employee for your taxes and how much money could you get?


If you declared that you were dependent on your 2019 tax return, you should have received $ 500 per employee in the first round of stimulus checks.

Sarah Tew / CNET

The rules for who qualified as an employee for the first control of the stimulus were confined: Americans with dependents aged 16 or younger received an extra $ 500 in full payment. If the White House and the Democratic negotiators agree on another coronavirus relief bill, there is a good chance that dependents will again increase your household amount by one second check, with some modifications. (To discover how old must dependents be to get a stimulus check here.)

But how does Congress define an employee, what do employees have to do with your tax return, and who might be excluded? This is where things get complicated, but we’ll break down what you should know and how to find the answers.

It is not yet confirmed who would be or would not be eligible – and will remain so – until a second stimulus control is approved, via compromise on another billor an executive order. If you have at least one employee and a new stimulus occurs, it could mean receiving more than $ 1,000 by check, direct deposit or Debit card for payments with economic impact.

Read on to find out everything you need to know about how to find dependents on your tax return and how this could affect the amount you would get on a second stimulus payment. (Here’s how to claim $ 500 for your employees with an IRS recovery payment.)

Who counts as an employee, according to the government?

In terms of tax law, an employee can fall into two categories: a qualified child or a qualified relative. They don’t need to be a child or be directly related to you, but they do need to meet certain IRS requirements.

To apply for a tax dependent child, they must be under the age of 19 or be a student under the age of 24 at the end of the calendar year. However, if your child is what the IRS calls “permanently and totally disabled,” you can claim them as a dependent regardless of their age.

To apply for a qualified relative, be it a child or an adult, as a dependent, they must meet other IRS criteria. This could include an elderly relative who is relying on your care.

Even if an employee has been claimed on your tax return, they may not have been eligible to receive money from the first round of stimulus checks due to the requirements of the CARES Act. However, some requirements are likely to change if another invoice is approved.

Where do I find how many dependents I have listed on my tax return?

If you filed your taxes in 2018 or later, you will find your dependents listed on Form 1040, U.S. Individual Tax Return. In the middle of the first page, you will see a box labeled Employees. Your dependents, along with their Social Security number, their relationship with you, and whether they are entitled to a child tax credit or a credit for other dependents will be listed there.


Find your employee from your 2019 1040 tax form.


How much money could I get for my family members if a second incentive payment is approved?

The first stimulus payment under the bipartisan CARES Act passed in March included $ 500 for employees aged 16 and under. There was no limit to the number of children who could count as employees, as long as they were 16 or younger and claimed by the taxpayer on their tax return, according to the Tax Foundation.

As another stimulus package has yet to be approved, we don’t know exactly how much money would be allocated to dependents. Under the Republican supported HEALS Act, you would receive $ 500 per employee, with no limit to the number of employees who could receive that money. Under the Democratic-backed Heroes Act, you would receive $ 1,200 per employee, for up to three people. Both bills would provide these payments for dependents regardless of age, including college students and dependent adults, including potentially elderly relatives who rely on you for care.

The amount of money you would get in a second stimulus payment will depend on yours adjusted gross income, which you can also find on your taxes. Check out our story on how to calculate how much money you could get in a second check.

What if I now have more dependents than in my last tax return?

If a child was born or adopted into your family in 2020 and therefore is not listed on the 2019 tax return you filed this year, you can apply for it on the 2020 tax return to get paid the $ 500 stimulus from CARES law in 2021 This would likely be the case if a second stimulus control was also approved.

You can also find out if you can claim a child or other relative as an employee of your taxes with this tool from the IRS.

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How does it work if I am divorced or legally separated from my spouse, sharing custody of a dependent?

A child can only be declared dependent on a taxpayer for one tax year. Typically, the child is considered to be dependent on the custodial parent, the parent with whom the child has lived for the longest period of time during the year, even if financial support has come from the other parent. However, this is not always the case. Find out more from the IRS here.

What if my spouse and I share a child, but declare taxes separately?

In this case, a child can still be claimed as an employee on only one return in a tax year. To find out who should claim the child upon their return, check the IRS information on Eligible Child of more than one person.

What happens if my employee dies?

If an employee was listed on your last tax return but has since passed away, it is likely that the extra $ 500 was still sent to you and would have been included in a second stimulus payment. However, a payment made to someone who died before receiving it should be returned to the IRS. Also, according to the IRS it is not possible to claim a stillborn child as an employee.

What is more, find out if you are qualified for a second stimulus check is when you can expect a second stimulus check. If you haven’t gotten a first stimulus check yet, you can do it monitor the state of stimulus control, learn how to report the missing check to the IRS and find it possible reasons why stimulus control has not yet arrived.

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