If the IRS concludes that you knowingly claimed a false dependent, they can assess a civil penalty of 20% of your understood tax... Failing to be honest by claiming a false dependent could result in 3 years of prison and fines up to $250000.
Your tax return will get flagged (because someone has already claimed child with that SS number) and the IRS will investigate. Once it's found that you have the legal right to claim him, he will have to return whatever refund he got from illegally claiming your son.
What Happens When Both Parents Claim a Child on a Tax Return? If you file amended returns to claim the child, the IRS will intervene and if he was not the custodial parent, he will likely be required to amend his returns and pay back any credits he did not qualify for.
Not only can the IRS impose late charges that come with a claiming a false dependent, the IRS may also impose civil penalties for claiming false dependents. If the IRS concludes that you knowingly claimed a false dependent, they can assess a civil penalty of 20% of your understood tax.
If you found out someone else claimed your dependent on their taxes, your dependent might be the victim of identity theft. If this is the case, don't panic. There are steps you can take to correct the situation, including filing a paper return and documenting your case for the IRS.
To claim a child as a dependent, that child had to live with you for over half the year. If the child did not live with you at all during the year, it is typically the case that the custodial parent is entitled to claim that child as a dependent instead.
The custodial parent signs a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent or a substantially similar statement, and. The noncustodial parent attaches the Form 8332 or a similar statement to his or her return.
If the noncustodial parent claims your child without permission. When the noncustodial parent claims the exemption on their taxes and they don't attach the required Form 8332 signed by the custodial parent, their tax filing doesn't comply with IRS rules. The IRS may enforce its rules.
Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions. You should amend your return if you reported certain items incorrectly on the original return, such as filing status, dependents, total income, deductions or credits.
By listing a dependent on the return, you are informing the IRS that your dependent has passed the four qualifying child tests and you are the custodial parent.
At any time, contact us here at eFile.com or call the IRS support line at 1-800-829-1040 and inform them of the situation. Or, take advantage of low-income tax clinics if this applies to you.
The dependent's birth certificate, and if needed, the birth and marriage certificates of any individuals, including yourself, that prove the dependent is related to you. For an adopted dependent, send an adoption decree or proof the child was lawfully placed with you or someone related to you for legal adoption.
After the IRS decides the issue, the IRS will charge (or, “assess”) any additional taxes, penalties, and interest on the person who incorrectly claimed the dependent. You can appeal the decision if you don't agree with the outcome, or you can take your case to U.S. Tax Court.
If you both try to claim the same child, the child will be treated as the dependent of: The parent with whom the child lived the longest amount of time during the year, or. The parent with the higher AGI if the child lived with both of you the same amount of time.
Answer when the IRS contacts you
About two months after you file a return, we'll begin to determine who's entitled to claim the dependent. You may receive a letter (CP87A) from us, stating your child was claimed on another return. It will explain what to do, either file an amended return or do nothing.
The special rule for divorced or separated parents allows only the noncustodial parent to claim the child as a dependent for the purposes of the child tax credit/credit for other dependents and the dependency exemption and does not apply to the EITC.
There is a specific scenario where a child can legally sue a parent for back child support. This is possible when the child is a court-appointed representative of the custodial parent's estate, for instance, if the custodial parent has deceased and bequeathed their estate to the child.
Only one person may claim a qualifying child
A child may meet all the requirements and qualify more than one person for the following child-related benefits: Dependency exemption. EITC. Child tax credit/credit for other dependents/additional child tax credit.
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
A non-custodial parent can claim his or her child as a dependent if the custodial parent has signed either a Form 8332 or a similar statement. If the non-custodial parent is able to claim his or her child as a dependent, the non-custodial parent will receive the dependent exemption as well as Child Tax Credit.
If the person who claimed you did so in error, they will need to file an amended return to remove you as a dependent. If the person who claimed you did so fraudulently, you may also need to contact the IRS to report identity theft.
Answer: No, an individual may be a dependent of only one taxpayer for a tax year. You can claim a child as a dependent if he or she is your qualifying child. Generally, the child is the qualifying child of the custodial parent.
If you are the custodial parent, you can use Form 8332 to do the following. Release a claim to exemption for your child so that the noncustodial parent can claim an exemption for the child.