What happens if you claim a dependent

You should know that we do not endorse or guarantee any products or services you may view on other sites. Tax information center : IRS : Audits and tax notices. You may have tried to file your tax return and got an e-file rejection message. Then, take these steps: 1. File a paper return. Document your case. The IRS rules for claiming a dependent can get complicated.

Examples are: School, medical, daycare, or social service records A letter on official letterhead from a school, medical provider, social service agency, or place of worship that shows names, common address and dates The IRS will ask you to complete this document.

Answer when the IRS contacts you. For any dependent dispute, know your options and your rights Dependent disputes can cause many types of tax problems. Make an appointment Or call TaxTip : This is a good reason to e-File early. After a return claiming a particular dependent is accepted, any subsequent return that is electronically filed claiming the dependent will be rejected by the IRS. However, having an IRS accepted return with a dependent is not a confirmation that this taxpayer is qualified to claim this dependent.

In other words, if you e-Filed your return with the dependents listed on your return, anybody else efiling their return after you claiming the same dependent s will have their return rejected. However, if another return claiming the same dependent s is filed manually mailed in , then the IRS will apply the tie-breaker rules see details below. There may be an exception when the splitting of tax benefits for a dependent is detailed in a legal divorce decree.

If you have such a decree that was issued after December 31, , you will need to file your tax return on paper and attach the relevant pages of the divorce decree, including the first page and the signature page. If the decree was issued before January 1, , the IRS will not accept it.

However, if you are a noncustodial parent claiming the child as a dependent, you have two options:. Review these steps if you e-Filed your tax return and it got rejected by the IRS because somebody, such as an ex-spouse or as a result of identity theft , has already claimed one or more of your dependents on his or her tax return.

Keep in mind, an accepted tax return is not a guarantee to have the right to claim the dependents on that return. Let's say you prepared and e-Filed your tax return and the IRS rejected it with the message that one or more dependents have been claimed on another taxpayer's tax return. General information on fraudulent tax returns: If you think you are a victim of identify theft, you can request a copy of a fraudulent return via Form F. The steps below apply if a tax return incorrectly claimed your dependent s or if you claimed dependents incorrectly.

Only one of these two things has to be true:. The person has one of these relationships to you. He or she is your child, stepchild, legally adopted child, foster child, or a descendant of any of those people for example, your grandchild or is your sibling, half sibling, stepsibling, niece or nephew including the kids of your half siblings , or is your parent or grandparent, stepparent, aunt or uncle, or in-law but not your foster parent.

The person lived with you all year. There are exceptions for temporary absences such as if the child was away at college , for children who were born or died during the tax year, for kids of divorced or separated parents and for kidnapped kids. Note that only one of the two things has to be true in order to get over the hurdle. This can be especially important for people supporting elderly parents who live somewhere else. People who are disabled or have income from a sheltered workshop get an exception.

Gross income includes money from rental properties, business income and taxable unemployment and Social Security benefits. Support generally includes household expenses such as rent, groceries, utilities, clothing, unreimbursed medical expenses, travel costs and recreation expenses.

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Generally, a married person who files a joint tax return there are some important but complicated exceptions to this; see IRS Publication for the details. Anybody who is not a U. Claiming a dependent can get you some big tax breaks.

Decent tax software should ask you questions that will help determine whether you qualify. Head of household filing status. List of Partners vendors. A dependent is a person who relies on someone else for financial support, and can include children or other relatives. Having a dependent entitles a taxpayer to claim a dependency exemption on their tax return, as long as the dependent meets the qualifying definition according to the Internal Revenue Service IRS.

A taxpayer who can demonstrate that they have a dependent also may be able to use this filing status to qualify for certain tax credits. A dependent may be a qualifying child or other qualifying relative. Dependency status is determined by IRC tests. To qualify for dependent status, three tests must be met for all dependents: the dependent taxpayer test, the joint return test, and the citizen or resident test.

Any person who may be claimed as a dependent by another taxpayer may not claim anyone as a dependent on their own tax return. Any person who filed a joint return as a married person cannot claim anyone as a dependent on their tax return. Finally, to be claimed as a dependent, a person must be a U. Only one taxpayer may claim a given dependent on their income tax return, which is particularly crucial in cases of dual custodial parents.

Dependency claims of separated or divorced parents are resolved in favor of the custodial parent. In some cases, previously determined court decrees or a written declaration by the custodial parent may release the claim to the noncustodial parent. Certain tests are used specifically to determine if a dependent is a qualifying child or a qualifying relative.

To meet the IRC relationship test —and be considered a qualifying child—the child must be:. To meet the IRC age test, the child must be:.

The final tests to determine if the individual qualifies as a qualifying child are the resident test and the support test. To meet the resident test, the child must have lived with the taxpayer for more than half of the year. However, there are exceptions to this rule. For example, if the child or the taxpayer is temporarily absent due to illness, education, business, vacation, military service, institutionalized care for a child who is permanently and totally disabled, or incarceration, then the child is still considered part of the residence living with the taxpayer during this time.

The support test requires that the child cannot have provided more than half of their own financial support during the tax year. You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped.

This treatment applies for all years until the year when there is a determination that the child is dead, or the year when the child would have reached age 18 whichever is earlier.