What if Someone Else Claimed Your Child as a Dependent?
You cannot find out who claimed the dependent: the IRS won't tell you because of the strong regulations protecting the privacy of tax information. However, you will probably have a good idea of who might have claimed your dependent: that person would need to know the dependent's name, Social Security number, and date of birth. About.com reader Autum3320 figured out that her ex-husband claimed their daughter, for example, and now she's ready to fight back.
What you should do is review the criteria for claiming a dependent. One of four crucial eligibility criteria is the residency test: for more than half the year, the dependent must have the same residence as you do. This test can be overridden only if the custodial parent releases his or her claim the dependent using IRS Form 8332.
If you are eligible to claim the dependent after reviewing all the criteria, then you should claim the dependent on your tax return, and file the return with the IRS. You will have to mail the return to the IRS, however. "Unfortunately, some returns cannot be e-filed. This is one of those cases. When two taxpayers claim the same dependent, the IRS will require that each taxpayer provide proof as to their right to claim the dependent. This takes time to sort out. Meanwhile, file your return claiming the dependents you are entitled to and if the return is rejected, file it by mail," states Kris Siolka, EA from the National Association of Tax Professionals.
You should be prepared for an audit. The IRS will audit both your tax return and the return of the other person who claimed the dependent. The IRS will ask questions and seek documentation based on the eligibility criteria and the tie-breaker tests. You can find extensive information in the exemptions for dependents section of IRS Publication 501.
To prepare for the eventual audit, you should gather any and all records indicating that the dependent lived with you, such as school and medical records. Having these records will go long way towards winning the audit and protecting your refund. You can read more about how the audit process is conducted and your rights to appeal a decision in Publication 556. You should be aware of all your rights as a taxpayer, including your right to seek assistance from the Taxpayer Advocate Service. You may be eligible to receive free or low-cost representation from publicly-funded tax clinics.
Our tax preparer notified us today that someone claimed our daughter as a dependent. In our case, we’re two parents who have raised our child since birth and there is no one who could have claimed her without stealing the personal information. Why would they do this knowing they’d get caught, and is there any real consequences if they do get caught?
Tara I had the same exact problem, expect my son passed away last August. So basically they stole the identity of a decesed child. IRS will not tell me any details, and I think the other person should go to jail for identity theft since I did not give them permission for this. What became of your case?
The IRS always catches these people because the agency has rigorous programs in place to prevent two people from claiming the same dependent. So the other party will be required to pay back all the tax deductions and credits they took, plus penalties and interest.
What an injustice!!! My daughter a full time student had a child and they both reside w/me. I am the sole provider for both and @ times have suffered trying to make ends meet. The child’s father claimed her and my taxes were rejected. Mind you this BOY has never even given the baby a red cent, but is claiming her and as per my accountant will win and get the refund. Me on the other hand will suffer the consequences of trying to feed, clothed and pay for her medical expenses, but God knows I don’t mind she is my grand daughter and will work 3 jobs if I have to. I love my grand daughter!!! But will we prevail?
Vivian, yes you will prevail. Under the rules for qualifying children, the child must live with the taxpayer for more than half the year. Since your grandchild did not live with the father, then the father does not qualify to claim the dependent. You are the only person who meets all the criteria for being able to claim the child.
I am in the same situation. I have my daughter and granddaughter living with me, and I am the sole support. My daughter has a medical condition and can not work at this time or at any time during 2008. I claimed them and found that my daughters ex boyfriend, the father of my grandchild whom my grandchild has never lived with claimed her. He has spent all the money. He paid one child support payment in Dec 2008 and that was it. My tax man, whom is very good said that he will not get away with it. He will have to pay it all back with interest and penalties. I have some other info to share with you but do not feel comfortable showing it online in case he is reading this. I am sure he is a little nervous after us telling him, he was in the wrong. Email me at buckandsue@aol.com
Here is our situation. My husband has two sons whom have lived with us since their mother left. They went the shared parenting route with my husband having physical custody. This did not work out. Went to court two weeks ago and were awarded tax returns on both boys (as well as full custody). We all have already filed our taxes. We need ours ammended and she’ll need to pay the IRS back. Who makes this first step? Do we take the court order papers to the tax prepayer (WHEN we get the papers) or can we go ahead with this? April 15 isn’t far away – I’d like to get this down quickly as it will lower state taxes we owe. Sorry I hope I didn’t confuse anyone too much.
I too just found out today that my taxes were rejected because someone else claimed my two grandkids whom I’ve had custody for almost two years. I suspect their birth mother because she called me a couple of months ago wanting their SS#’s because she claimed she was making them beneficiaries on life insur she was getting. Of course I didn’t give the numbers to her, but she must have gotten their birth certificates from the court house and then went to SS office to get their numbers. Anyway, I called IRS Identify number 1-800-908-4490 and they told me that they will look at the tax returns once they receive them. I then called Federal Trade Comm (FTC) 1-877-438-4338 on Identify Theft. They told me to file a local police report on identity theft and they would mail out an avidavit to me. They also asked me who I suspected used the kid’s numbers, so I told them so they would have it on record. Claiming children fraudulently is a federal offense, so hopefully the birth mother will be caught.
my kids grandmother claimed them on her taxes and didnt get my permission.Ithink that is so wrong since her nor her son does anything for them.I just recieved a notice saying that i will be audit because someone used the same social security numbers as me and Ithink it is unfair because i am their provider with help from no one!
Tauwana, this situation is more common than you realize. Also too often does a person who does their own taxes through commercial software think that because they help support a grandchild, they automatically assume they are entitled to claim them on taxes. It is unfair that you have to go through the tedious process of an audit, but rest assured so long as you are truely the one who provided more than half of the child’s support, and you have not signed Form 8332 giving the child’s father the exemption, you will be allowed the claim the child. In this case, the audit will work out in your favor.