What to Do If You’re Claimed Wrongly as a Dependent on Someone Else’s Tax Return

The child you’re trying to claim has to meet an age test. Children can only be claimed as dependents if they are under the age of 19. However, you can claim full-time students as dependents until they turn 24. As you can see, there are a lot of opportunities to benefit from your taxes by claiming dependents.

• To claim the EITC, the taxpayers must be the custodial parent and they must have earned income from a job or self-employment.
• EITC and CTC also require that you lived with the children you are claiming for at least 6 months of the year.
• Two tax returns can’t both claim the same dependent even if they have different filing statuses.
• Maybe your former partner and your child are living with another relative, who thinks they’re entitled.

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Tax Audit

Otherwise, you will both need to work with the IRS in order to settle the dispute by mailing forms and documents back and forth. When someone claims your dependent with malicious intent (i.e. to take advantage of dependent tax breaks and take them from you), then you are forced to rely on the IRS to handle this. You may be requested to send proof of dependency documents; communicate and work with the IRS to rightfully claim your dependent. While there are many cases of identity theft of dependents, most cases of wrongly claimed dependents are committed by family members, relatives, and ex-spouses.

This means that a taxpayer must provide financial support for that relative or friend for most of the year. The IRS knows that some taxpayers provide their children and relatives with financial support. That’s why the government offers folks with dependents the opportunity to reduce their tax https://turbo-tax.org/ burden. Being able to claim someone as a dependent may significantly lower your tax bill. If you’re struggling to determine your eligibility, afinancial advisorwho specializes in taxes can help. It’s always best to consult with a tax professional for advice on claiming children as dependents.

Can I claim the EIC?

The noncustodial parent must then attach a copy of the signed form to their tax return to prove they can claim this exemption. Second, review any agreements that you and your ex have in place for claiming exemptions as part of your divorce decree. If parents share custody, for example, these agreements might include that exes might each claim different children as dependents each year, or alternate years when they can claim dependents. In another scenario, the noncustodial parent who earns more and contributes more to child support might save more on taxes if they’re awarded the exemption, so the exes decide to go that route. You are not eligible for either the Child Tax Credit, Additional Child Tax Credit, or Earned Income Tax Credit with this child. Double-check that you’re entitled to claim a dependency deduction.

• First, the person can’t be your qualifying child or the qualifying child of any other taxpayer.
• In order for you to claim a relative as a dependent, that family member cannot have a gross annual income above $4,300 in 2021.
• Not exactly, and you certainly wouldn’t be the first parent, or the last, to claim your child as your dependent, only to find out that your former partner has already done so.
• Different from a tax deduction, which lowers a person’s taxable income, a tax credit reduces the overall amount of tax a person is required to pay, dollar for dollar.
• There are exceptions for mothers, fathers, nieces, nephews and other relatives.

If the child’s parents file separate tax returns, the situation can get messy when both parents try to claim the same child. Download your completed tax return that was rejected by e-file and mail it to the IRS.

What to Do If Your Dependent(s) Have Been Claimed

Often, taxpayers who get audited for one year will be audited the next year as well. Hold on to papers that could be helpful in case of a future audit. In order to claim the EITC or CTC for a child, it is not enough that you are taking care of them.

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Terms and conditions apply; seeAccurate Calculations Guaranteefor details. It’s always a good idea to discuss claiming children with your family members before a situation like this arises, if possible. You are also eligible to apply for the Recovery Rebate Credit, also known as stimulus payments, as part of this process. Learn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren. To be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 . Special rules apply for the home and other assets. The person has one of these relationships to you.

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• The Child Tax Credit is one pro of claiming your child as a dependent.
• If you and your ex have an agreement in a particular year for the noncustodial parent to claim your kids as dependents, you’ll need to make it official.
• If someone other than a parent is trying to claim your child, they’re out of luck.

Answer when the IRS contacts youAbout two months after you file a paper return, we’ll begin to determine who’s entitled to claim the dependent. Secure copies of birth certificates, proof of identity and documents that show your dependent lived with you at the same address for more than half of the calendar year. Your refund will be delayed while we investigate your case. Paper tax returns can take up to six to eight weeks for us to process. If you found out that you claimed a dependent incorrectly on an IRS accepted tax return, you will need to file a tax amendment or form 1040-X and remove the dependent from your tax return. Enrollment in, or completion of, the H&R Block Income Tax Course or Tax Knowledge Assessment is neither an offer nor a guarantee of employment.