For example my daughter's grandmother carried her last year....but this year I'm carrying her if the grandmother still carries her after knowing that I am what will the results be? And how can I be cleared since it's my kid?
2007-01-17 05:35:49 · 8 answers · asked by Sheana R 1 in Business & Finance ➔ Taxes ➔ United States
If she lived with you for more than half of the year, then you are the one who can claim her. If not, then if she lived with her grandmother for at least half the year, she can. If all of you lived together, then you get the exemption.
The person who is not entitled to claim her should file an amended return to drop the exemption, if the IRS hasn't caught up to it yet. The more likely thing is that the IRS will send both parties a letter asking each to prove that they are the one who can take the exemption. The person who is not entitled to take it will then have to pay back whatever they saved by taking the child, with interest.
2007-01-17 17:27:58 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
You both should decide who will claim your daughter.
If your child is claimed as a dependent by you and the grandmother, both tax returns will eventually be audited. If the first person to file is later shown not to be entitled, they will have to refund the taxes involved and will have to pay a penalty.
Plus, if someone claimed the Earned Income Tax Credit, claiming a child they weren't eligible to claim, that person will not be able to claim the EITC for 2 years if they disregarded the rules, and for 10 years if the IRS determines fraud was involved.
2007-01-17 13:58:16 · answer #2 · answered by WiseOwl 2 · 1⤊ 0⤋
The government considers the relative that actually paid for the housing food and incidentals to be the one entitled to the deduction. If your daughter lived with her grandmother, then the government will allow her to take the deduction. Being the childs mother does not automatically entitle you to the deduction.
If you in fact supported and housed the child, then you may claim the dependent. If the Grandmother also claims the child, then she will owe the taxes and interest on theclaim. If she did so willfully, she could be prsoecuted for fraud, but it is unlikely.
2007-01-17 13:42:05 · answer #3 · answered by Anonymous · 0⤊ 1⤋
That will likely show up at a later date when the returns are checked and cross-matched. Since the SS# will have to provided, the computer will pick that up. If the kid is your dependent and you can prove that, you should not worry about it. That means the kid is living with you and you are providing for the care.
If you are in doubt about that, you should contact your tax preparer.
2007-01-17 13:56:01 · answer #4 · answered by united9198 7 · 1⤊ 0⤋
Both returns will be challenged by the IRS. You'll both be asked to prove your eligibility for the exemption. The IRS will then decide who gets it.
2007-01-17 13:40:27 · answer #5 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You will be audited and punished for cheating. You need to set the guidelines at the beginning of the year with your mother that you will be deducting the child and not try to cheat the government!!!
2007-01-17 13:40:02 · answer #6 · answered by Paul V 6 · 1⤊ 2⤋
THE PERSON WHO USED HER FIRST WILL GET AWAY WITH IT, BUT IF THEY CAN PROVE THAT THE CHILD LIVED WITH THEM FOR 6 MONTHS OR MORE, THEN THE OTHER PERSON WILL BE FINED.
2007-01-17 13:39:59 · answer #7 · answered by ERICKSMAMA 5 · 1⤊ 1⤋
phone the tax place.
2007-01-17 13:39:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋