[{"@context":"http:\/\/schema.org","@type":"Article","video":{"@type":"VideoObject","author":{"@type":"Person","familyName":"Allec","email":"logan.allec@moneydoneright.com","sameAs":["https:\/\/loganallec.com\/","https:\/\/twitter.com\/loganallec","https:\/\/www.facebook.com\/logan.allec","https:\/\/www.instagram.com\/loganallec\/","https:\/\/www.youtube.com\/channel\/UC3Jg7eUCBPsjX13X7kTW1hQ"],"spouse":"https:\/\/moneydoneright.com\/author\/caroline-allec\/","alumniOf":["http:\/\/www.ucla.edu\/","https:\/\/en.wikipedia.org\/wiki\/Ernst_%26_Young","https:\/\/www.usc.edu\/"],"hasCredential":["https:\/\/cslainstitute.org\/","https:\/\/en.wikipedia.org\/wiki\/Certified_Public_Accountant"],"birthDate":"1988-08-04","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","image":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2020\/01\/Logan-Allec-Money-Done-Right.jpg","description":"Logan Allec is a practicing Certified Public Accountant, Certified Student Loan Professional, and the founder of personal finance blog Money Done Right.  He provides a second level of review for the site\u2019s more technical articles, particularly those pertaining to taxation, credit, and student loans. He also educates thousands of people every week on The Money Done Right Show.","gender":"Male","givenName":"Logan","birthPlace":"https:\/\/en.wikipedia.org\/wiki\/Anaheim,_California","jobTitle":"Founder","nationality":"https:\/\/en.wikipedia.org\/wiki\/Americans","worksFor":{"@type":"Organization","url":"https:\/\/moneydoneright.com\/","founder":{"@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/"},"publishingPrinciples":{"@type":"WebPage","url":"https:\/\/moneydoneright.com\/methodology\/","name":"Money Done Right Publishing Principles","@id":"https:\/\/moneydoneright.com\/methodology\/"},"sameAs":["https:\/\/twitter.com\/moneydoneright","https:\/\/www.facebook.com\/moneydoneright\/","https:\/\/www.instagram.com\/moneydoneright\/","https:\/\/www.linkedin.com\/company\/money-done-right\/","https:\/\/www.pinterest.com\/moneydoneright\/","https:\/\/www.youtube.com\/c\/MoneyDoneRight"],"email":"support@moneydoneright.com","legalName":"Allec Media LLC","address":{"@type":"PostalAddress","streetAddress":"23890 Copper Hill Dr Ste 139","postalCode":"91354","addressRegion":"California","addressLocality":"Valencia","addressCountry":"United States","name":"Money Done Right Address","@id":"https:\/\/moneydoneright.com\/#PostalAddress"},"additionalType":"Blog","naics":"519130","logo":{"@type":"ImageObject","width":"60","height":"488","name":"Money Done Right Logo","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","@id":"https:\/\/moneydoneright.com\/#ImageObject"},"parentOrganization":"https:\/\/moneydoneright.com\/#ParentOrganization","foundingLocation":"https:\/\/en.wikipedia.org\/wiki\/Santa_Clarita,_California","name":"Money Done Right","@id":"https:\/\/moneydoneright.com\/#Organization"},"name":"Logan Allec","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/"},"publishingPrinciples":{"@id":"https:\/\/moneydoneright.com\/methodology\/"},"contentUrl":"https:\/\/youtu.be\/LjtVIo_u-2Q","embedUrl":"https:\/\/www.youtube.com\/embed\/LjtVIo_u-2Q","thumbnailUrl":"https:\/\/i.ytimg.com\/vi\/LjtVIo_u-2Q\/maxresdefault.jpg","duration":"P0Y0M0DT0H7M22S","description":"Last week, Representative Alexandria Ocasio-Cortez publicly gave some terrible and erroneous tax advice pertaining to the stimulus payments, and -- both hilariously and ironically -- the only network that published it was Fox News, and they did so uncritically.  My point here isn't to crap all over AOC or Fox News but to point out that no matter your political leanings, whether you're an AOC fan or a Fox News fan, you need to think for yourself and look at the actual facts (in this case, the actual text of the CARES Act alongside the Internal Revenue Code).","name":"Bad Stimulus Tax Advice from AOC and Fox Video News VideoObject","uploadDate":"2020-04-05","isFamilyFriendly":true,"isAccessibleForFree":true,"publisher":{"@id":"https:\/\/moneydoneright.com\/#Organization"},"@id":"https:\/\/moneydoneright.com\/aoc-fox-news-stimulus-tax-advice\/#VideoObject"},"publisher":{"@id":"https:\/\/moneydoneright.com\/#Organization"},"mainEntityOfPage":"https:\/\/moneydoneright.com\/aoc-fox-news-stimulus-tax-advice\/","author":{"@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/"},"name":"AOC Fox News Stimulus Tax Advice Article","image":"https:\/\/moneydoneright.com\/wp-content\/uploads\/aoc-fox-news-stimulus-tax-advice.jpg","description":"Representative Alexandria Ocasio-Cortez publicly gave some terrible and erroneous tax advice pertaining to the stimulus payments, and \u2014 both hilariously and ironically \u2014 the only network that published it was Fox News, and they did so uncritically.","headline":"AOC and Fox News Both Just Gave Terrible Tax Advice","articleBody":"So this week, Representative Alexandria Ocasio-Cortez publicly gave some terrible and erroneous tax advice pertaining to the stimulus payments, and \u2014 both hilariously and ironically \u2014 the only network that published it was Fox News, and they did so uncritically.  My point here isn\u2019t to crap all over AOC or Fox News but to point out that no matter your political leanings, whether you\u2019re an AOC fan or a Fox News fan \u2014 though if you\u2019re both an AOC fan and a Fox New fan, I would question the consistency of your political views \u2014 you need to:  think for yourself and look at the actual facts (in this case, the actual text of the CARES Act alongside the Internal Revenue Code). So please share this with anyone who has a one-track political mind and who looks at some figure or network \u2014 be it AOC or Trump or CNN or Fox News or whoever \u2014 and takes whatever they say as absolute truth.  Look, I was able to hone in on this mistake \u2014 and literally no one else is talking about this \u2014 because I\u2019m a tax expert.  But the truth is, there\u2019s B.S. everywhere on both sides of the aisle. Context to AOC\u2019s Statement I\u2019m going to tell you exactly what AOC said and Fox News published later in this article, but just to give some context to Representative Ocasio-Cortez\u2019s tax advice:  There\u2019s no question that some people are getting shafted by the stimulus.  Consider dependent adults such as disabled adult children still dependent on their parents or elderly parents whose children claim them as dependents.  In both of these scenarios, the dependent doesn\u2019t get anything from the stimulus, and the person claiming them doesn\u2019t get anything for them either.  And these are frankly people who probably need a little extra more than the average American right now.  I know people caring for disabled adult children, and that\u2019s such a burden.  And I also know people who are caring for elderly parents, and I know that can feel like a full-time job. Another example of people who got \u201cleft out\u201d is college students who are claimed as dependents by their parents.  Parents can claim their children as dependents on their tax return under the age of 24 if they are a full-time college student at least five months of the year and the parents provide more than half of their support.  For stimulus purposes, however, the parents can\u2019t get the $500 for them because they\u2019re aged 17 or older, and the college student can\u2019t get the $1,200 because they\u2019re eligible to be claimed as a dependent.  They\u2019re both screwed. What AOC Said (and Fox News Published) So Representative Ocasio-Cortez, in a virtual town hall this week, gave a little piece of tax advice for these students and their parents.  Here\u2019s what she said:  If you are\u202617 or older, and you are filed as a dependent on someone else\u2019s tax return, there is no cash assistance, or additional cash assistance, that\u2019s offered to that person, so you do not receive a $1,200 check, and you\u2026are not counted as that additional $500 toward whoever\u2019s counting you as a dependent.  So a lot of people are very concerned about this. My personal piece of advice would be that if you have not yet\u2026filed in 2019, talk to the person who is claiming you as a dependent and figure out if\u2026your personal situation would be better if you all filed separately, or if it ends up\u2026still being the best thing to do to file together. So make sure you have that conversation.  I don\u2019t believe that it\u2019s too late to file your 2019 return in the way that you see best fit for yourself and your situation.  Representative Alexandria Ocasio-Cortez  She\u2019s saying that college students should figure out with their family to look into what tax benefits their parents get if they claim them as a dependent \u2014 such as potentially the American Opportunity Tax Credit for qualified education expenses that parents paid on the student\u2019s behalf \u2014 and to weigh these parental tax benefits against the $1,200 stimulus payment the student would (supposedly) get if their parents didn\u2019t claim them as a dependent.  Why AOC and Fox News Are Wrong So why are AOC and the article that Fox News published wrong?  Because it doesn\u2019t matter if mom and dad claim you their eligible college student or not \u2014 even if the student is merely eligible to be claimed as a dependent by them, they are not eligible for a $1,200 stimulus payment.  Don\u2019t believe me?  I\u2019ll show you in the actual law.  It says:  For purposes of this section, the term \u2018eligible individual\u2019 means any individual other than\u2026any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual\u2019s taxable year begins.  What does this mean?  What is this Section 151?  It\u2019s referring to Section 151 of the Internal Revenue Code i.e. the tax code.  It\u2019s referring to dependents  Now look closely at the language of the CARES Act (above).  Does it say that you\u2019re not eligible if you\u2019re an individual with respect to whom a deduction under section 151 was taken by another taxpayer?  No.  It says you\u2019re not eligible if you\u2019re an individual with respect to whom a deduction under section 151 is allowable to another taxpayer.  \u201cAllowable\u201d means whether they actually claim you as a dependent or not.  So college students, if your parents can claim you as a dependent, and you somehow convince them not to, you are still not eligible for the $1,200 stimulus payment, despite what AOC and Fox News told you!","dateModified":"2020-05-04","datePublished":"2020-04-04","@id":"https:\/\/moneydoneright.com\/aoc-fox-news-stimulus-tax-advice\/#Article"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Taxes","item":"https:\/\/moneydoneright.com\/taxes\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Personal Taxes","item":"https:\/\/moneydoneright.com\/taxes\/\/personal-taxes\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"AOC and Fox News Both Just Gave Terrible Tax Advice","item":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/aoc-fox-news-stimulus-tax-advice\/#breadcrumbitem"}]}]