I have 3 kids and my friend said i should let her claim one of them because they only let you claim 2 for the child credit, which she says is where most of the money will come from. She said she will split with me what she gets for the one...what do you think?
2007-01-27 05:07:09 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
That's tax fraud! Pure and simple! When the IRS catches you -- and they probably will -- you'll both be facing some serious consequences. Penalties and interest that will kill off any gain you might have gotten at the very least. And worst of all: Possible prosecution for tax fraud. That could include prison time.
2007-01-27 05:29:45 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
She can't claim your kids unless she is providing their support, and your child is living with her. The only limit to the child tax credit is that it depends on how many kids you have. You will max out on the earned income credit, but the child tax credit is $1,000 per child under the age of 17. Also, since you have 3 children, this makes the child tax credit a refundable credit, so even if you had no other income, you can still get the child tax credit.
2007-01-27 05:20:39 · answer #2 · answered by jseah114 6 · 2⤊ 0⤋
2 Kids is the limit for the tax credit, but with a third you have additional child tax credit based on your income. Also the number of exemptions is based on number of people you claim(which lowers your tax liability). Things to think about. One, it is illegal, the IRS will wonder why someone is claiming a child that is not theirs via social security number. They can be audited and no one has yet to find a successful way to beat the government.
2007-01-27 05:20:57 · answer #3 · answered by Anonymous · 1⤊ 0⤋
It is illegal to allow someone else to claim your child on their tax return unless they are the parent or legal guardian of that child.. If you are eligible to claim your children on your return you claim them all. You never want to give your childrens social security number to anyone. Thats how idenity thief happens. The EIC has a cap on the number of children that qualify you for that credit which is 2 children. But you may claim all 3 for the Child Tax Credit and the Additional Child Tax Credit. Your friend is trying to take advantage of both you and the Federal Gov.
2007-01-27 05:17:27 · answer #4 · answered by Anonymous · 1⤊ 0⤋