ok, this is the situation, my sister has lived at my parents for the past 2 years WITH her 2 children, she doesnt work, she is still married but her and her husband dont live togehter. he basically comes over once a week to visit the kids. he will leave her money for diapers and thats about it. other than that. she lives with my mom, she doesnt pay rent. my parents mentioned tonite that they were going to claim her AND her two children because they are living here too. my sister got mad saying she doesnt care if they claim her, but she wants to claim at LEAST one of her kids. I know from reading into it, that if she has been living here 60% of the time. which she DEFINENTLY has, that they will be able to claim her. i know for sure that the dad cant because the kids dont live with him and he barely pays for anything. my parents have paid for everything. my sister just argued that shes the one who takes care of the kids and such. but no matter what, she still lives here. who can claim?
2007-01-02 16:02:05 · 10 answers · asked by scion_xb_girly 3 in Business & Finance ➔ Taxes ➔ United States
Short answer: Your sister calls all the shots here.
The sister is married. She has the choice to file with her spouse as married filing jointly. I am assuming that her husband has at least some income and is going to file his taxes. If your sister files a joint return with her husband, your parents may not claim the sister.
The sister is the custodial parent, and as such has the right to claim her children on her tax return (which if she files will be a joint return with her husband). Since she has lived with the children for six months, all tax benefits will go to her and her spouse if they file together.
Your sister is not required to file a return at all. If she does not file, then she can waive the tax exemptions to her husband and he can claim one or both children. From your description of the living arrangement, his only option is to file Married Filing Separately, so he loses most tax benefits.
Lastly, if your sister does not file a tax return with her spouse, and does not waive the dependency exemptions to the spouse, then she can be claimed as a dependent by her parents, and the children can be claimed by the grandparents as well.
If she wants to claim one of the children, then she needs to file jointly with the spouse. In that case, the grandparents can claim the other child.
Please advise your sister to make up her mind soon, because if the grandparents take her and the children on their return, and then she tries to file, it will create a mess...although she will prevail eventually if she contests how the grandparents filed.
2007-01-02 17:20:08 · answer #1 · answered by ninasgramma 7 · 0⤊ 1⤋
If your sister files a joint return with her husband, your parents can't claim her. If she's over 18 and not a full-time student or over 23 even if she is a student,, they can't claim her unless she's totally and permanently disabled.
If your sister doesn't work, she wouldn't even have a return to file unless she has significant other income from investments or interest. If she doesn't file, then what does she mean about wanting to claim one of the kids? That doesn't make any sense. Unless she's filing a joint return with her husband, and then if they claim the kids, unfair though it might be, and ridiculous as it sounds, your parents couldn't claim them - if they do and your sister claims them also, the IRS would contact both parties to see who is entitled to the deduction - as the parent, she'd most likely win.
But your parents are entitled to claim them as long as nobody else is.
As to the EIC that someone else mentioned - it's the EARNED INCOME credit, so if your sister doesn't have earned income (i.e. doesn't work) she can't get that.
2007-01-02 17:08:11 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
If your sister files a joint return with her husband she and the kids CANNOT be claimed by your parents. If she doesn't work, than that is the only way she can claim any of the kids. Look at page 28 of pub. 17. Hopefully she and her husband are civil enough to do a joint return.
2007-01-02 16:25:35 · answer #3 · answered by chelle8079 2 · 0⤊ 0⤋
Her parents can claim the kids. I have a friend whose parents claim her kids every year even though they don't live with them. As long as the children have lived with them more than half of the year or they have provided half of their care they can claim them. I am unsure about the daughter though because of age. Why exactly does the daughter want to claim them if she hasn't worked, they are bound to get a better refund if the grandparents claim the children as dependents on their taxes.
2007-01-02 16:18:30 · answer #4 · answered by averyanne77 4 · 0⤊ 1⤋
Your parents can legally claim both children and your sister if they really are supporting her and if they provided a home for her for over 50% of the time.
Your sister is dumb. If she is a dependant, she can't claim a dependent.
I reccomend that your sister claim herself and allow your parents to claim the children. Make sure the husband knows what is going on, so he doesn't try to claim anyone.
You sister can find her own place to live, if she is wants to act like a crybaby.
2007-01-02 16:15:09 · answer #5 · answered by limendoz 5 · 1⤊ 1⤋
If she is truly still married and files a joint return with hubby, she can't be claimed by your parents. However, if no joint return, she can be claimed as a dependent. Based on the residency you stated, your parents will be able to claim the children (grandchildren) as dependents as long as they can proof that they are paying more for their support than anyone else. If the mother (your sister) or father (her husband)try to claim them also there could be a nasty fight and many unpleasantries from the IRS. Best to get agreement (preferably in writing) before any tax returns are filed.
2007-01-02 16:59:34 · answer #6 · answered by domers13 2 · 0⤊ 2⤋
The parents are going to be in a world or hurt when the IRS denies the claim.
The mother is the legal parent/guardian......so she can claim the kids.....even thought she did not work she can claim the EIC credit for a return......if the mother is under 18 and lives at home....her parents can claim her as a dependent....but the mother would not be able to claim any credits for she is a dependent....but if the mother gave temp. custody retroactively to the parents for the grand kids then they could claim them as dependents also.
It gets pretty screwy with the laws and rules....hopefully the parents are having someone do their taxes.
2007-01-02 16:16:02 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Read the test for dependants in the tax instructions. It sounds like your parents can claim sister and both kids. If she hasn't worked, why would she need to claim anyone?
2007-01-02 16:13:11 · answer #8 · answered by Anonymous · 0⤊ 1⤋
You sound like a large sister, I desire I had you yet I accept as true with the others that the IRS won't see it as you helping them without evidence of easily having presented greater suitable than a million/2 of their annual help. you will, even nonetheless, get greater from being a large aunt, giving 2 youngsters stability and being there for them would be paid back with activity whilst they become previous and savour what you have executed.
2016-10-19 09:43:04 · answer #9 · answered by ? 4 · 0⤊ 0⤋
Check with your tax advisor but as far as I know, no one can except the parents of the child (and if they are actually supporting them...)
2007-01-02 16:11:17 · answer #10 · answered by beetlejuice49423 5 · 0⤊ 2⤋