Unreported income after filing taxes?

Question

I just filed my income taxes this afternoon. I claimed my neighbor's daughter as a non-EIC dependent, but she made less than $1000.00 for the year. I did not report her income because she made less than $3200.00. Should I have claimed her income even though we never received any of it? Also, we had one other W-2 show up in the mail today that was not reported. It is only for $57.00 with no Federal or State taxes taken out. I imagine that I will need to file an 1040X, but what am I looking at as far as receiving my refund in time? We are due a refund of approx. $2400 this year, with an AGI of approx. $29,000. Any solutions?

In response to Judy's answer, my neighbor's daughter DID live with me for the WHOLE year and I DID support her. So, I did NOT break the law. Thank you though for your insight.

Answer 1

You don't have to report the neighbor's daughter's income on your return. However, if she had federal tax withholding she should file a dependent's return and get the withholding back.

Your $57 W2 without tax withholding means that you should have paid an additional $9 federal income tax. You need to amend your return and send IRS a check.

Best wishes.

Answer 2

You claimed your neighbor's daughter? Unless she lived with you all year AND you provided more than half of her support, that wasn't legal. And that's lived WITH you in your home, not next door or down the street. No, you should not have claimed her income on your return. Unless she's related to you, plus a few other qualifications you didn't mention, you broke the law by claiming her as a dependent. Even if she was a legal dependent though, you wouldn't have reported her income on your return.

Yes, you need to file an amended return for the $57, although it probably won't change your taxes much, most likely under $10. It being missing from your return will probably not hold up your refund.

But while you're filing your amended return, you should take the opportunity to drop the deduction for the neighbor's daughter. File legally, not falsely. In the long run, you'll be better off, and won't be waiting for the IRS to knock on your door.

If somebody told you that you could legally claim this person as long as nobody else was claiming her, and maybe her parents said it was OK, what they told you is NOT true. If you think it is, either call the IRS and ask them (you don't have to give your name) or read the requirements for a dependent in the 1040 or 1040A instructions.

Realize that part of that $2400 refund was obtained by lying to the IRS by filing a false return. If the person you claimed didn't live with you for the entire year, OR even if she did, if you didn't provide more than half of her support for the year, then you've committed a crime. Is it worth it?