Next Stimulus Payments: Who Could be Eligible Dependents and their Importance

The approval of the next stimulus payments could give you additional money based on the eligible beneficiaries' dependents. But how do you define a dependent that might not be the same as the IRS and could make a difference of $500 on the next round of stimulus check, if it will happen?

A total of $1,200 maximum per adult was the starting price of the first stimulus payment. This comes with a $500 payment per 'dependent,' based on the definition of tax law with omissions and exceptions that didn't make a whole lot of sense to most people and left millions of citizens cut out from receiving a check. Suppose the relief bill expands its qualifications and passes before the year ends. In that case, it could mean you would receive more than $1,200 via check, direct deposit, or an Economic Impact Payment debit card.

But before the next stimulus bill passes, let's look through the legal definition how your dependents could influence your federal tax return as well as the next stimulus payment. Here are four significant stimulus check facts you should know with regards to your dependents:

Who is a dependent?

According to the government, specifically the tax law, there are two categories a dependent can fall into a qualifying relative or a qualifying child. A dependent doesn't need to be your biological children or a qualifying child like your dependent on your taxes. You can treat a child as your dependent as long as they meet specific requirements from the IRS.

Children must be either a student younger than 24 years old at the end of the calendar year or below 19 years old to claim a qualifying child as dependent on your taxes. However, you can claim a dependent regardless of age if your child is what the IRS calls 'totally and permanently disabled.'

Meanwhile, you may claim a qualified relative as a dependent, whether it be a child or an adult if they meet other IRS criteria. This qualification includes an elderly relative who relies on you for care.

What's the most you could get for dependents?

The CARES Act passed in March includes the first stimulus payment under the bipartisan, which also has the $500 for dependents of 16 years old below. There is no limitation to the number of children who could be included as dependents, as long as dependents were 16 or younger claimed by the taxpayer on tax return, as per the Tax Foundation.

No exact amount is confirmed to be allotted for dependents as another stimulus package has yet to be passed. The Republican-backed HEALS Act could give $500 per dependents, with no limits on the number of dependents who could receive the stimulus payments. While the Democratic-backed Heroes Act, you could get $1,200 per dependent up to three people. These payments would provide these bills for dependents no matter the age, including adult dependents and college students, and potentially elderly relatives who depend on you for care.

The amount of money you would get would depend on the adjusted gross income that you can find on your taxes in the next stimulus payment.

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

If a child was adopted or born in 2020 and therefore not listed on your 2019 tax return you filed this year, you could claim them on the 2020 tax return. The dependents could get the $500 dependent stimulus payment from the CARES Act in 2021. This could be the case in the second stimulus check if it will be approved as well.

On my tax return, where can I find the list of dependents I listed?

You will find your dependents' list on form 1040, US Individual Income Tax Return if you filed taxes in 2018 or later. Along with their social security number is your dependents, relationship to you. The list also has the details if they qualified for a credit for other dependents or a child tax credit.

Check these out:

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