What if the Wrong Person Claims Your Child?
As a parent, claiming your child on your tax return can bring you valuable tax benefits such as child tax credit, earned income tax credit, and dependent exemptions. However, when someone else claims your child on their tax return, it can be a frustrating and challenging situation. It is crucial to take the right steps to ensure that you receive the tax benefits you are entitled to and avoid potential legal consequences.
If the wrong parent claims your child on their tax return, you can take the following steps:
Review your tax return and ensure you qualify for claiming your child as a dependent
Before taking any further steps, it is essential to review your tax return and make sure that you qualify for claiming your child as a dependent. The IRS has specific criteria that determine whether you can claim your child as a dependent. These criteria include:
The child must be your biological or adopted child, stepchild, foster child, sibling, or descendant.
The child must be under the age of 19 at the end of the tax year, or under the age of 24 if they are a full-time student.
The child must have lived with you for more than half of the tax year.
You must provide more than half of the child's financial support.
If you meet all these criteria, you can claim your child as a dependent on your tax return. However, if someone else claims your child as a dependent, you will need to take the necessary steps to resolve the issue.
2. Contact the other parent and discuss the situation
If the wrong parent claims your child on their tax return, the first step is to contact them and discuss the situation. It is possible that the other parent made an honest mistake and was unaware that they were not eligible to claim the child. In this case, you can ask them to amend their tax return and remove the dependent claim. However, if the other parent refuses to cooperate or insists that they have the right to claim the child, you may need to take further steps.
3. Fill out IRS Form 8332
If you are the custodial parent, and the non-custodial parent claims your child on their tax return, you can fill out IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This form allows you to release your claim to the child's exemption, allowing the non-custodial parent to claim the child on their tax return. However, you can also revoke this release if necessary.
If the non-custodial parent claimed the child without your permission, they may be in violation of the form's terms and may face penalties. Additionally, if they have previously been denied the ability to claim the child in the past, claiming the child again without permission could be considered fraud.
4. Provide evidence of support and custody
If the other parent refuses to cooperate, you will need to provide evidence that you are the rightful claimant for the child. This evidence can include custody agreements, school records, medical records, and other documentation that shows you have primary custody and provide more than half of the child's financial support.
You can also file IRS Form 886-H-EIC, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, to notify the IRS that the other parent is not entitled to claim your child as a dependent.
5. Prepare for a potential audit
If you file a dispute with the IRS, be prepared for a potential audit. The IRS may ask for additional documentation, such as proof of residency and financial support, to determine which parent is entitled to claim the child. If you have followed all the rules and have sufficient evidence to support your claim, the audit should go smoothly.
However, if the IRS finds that you have falsely claimed your child as a dependent, you may face penalties and fines, including repayment of any tax benefits received. The IRS may also impose interest and additional taxes on the unpaid balance.
In conclusion, if the wrong parent claims your child on their US tax return, you can take steps to rectify the situation. The first step is to review your tax return and ensure you qualify for claiming your child as a dependent. Next, you should contact the other parent and discuss the situation. If necessary, you can fill out IRS Form 8332 and provide evidence of support and custody. Finally, be prepared for a potential audit and follow all the rules to avoid any penalties or fines.
Most people find out about this problem when the start to file their tax return and it gets rejected by the IRS. A tax attorney at Safeguard Law, PLLC would be happy to walk you through the process to address this stressful situation.
Sources:
IRS.gov. "Topic No. 354 Dependents – Qualifying Child." Accessed April 27, 2023. https://www.irs.gov/taxtopics/tc354.
IRS.gov. "Publication 501 (2021), Dependents, Standard Deduction, and Filing Information." Accessed April 27, 2023. https://www.irs.gov/publications/p501.
IRS.gov. "Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent." Accessed April 27, 2023. https://www.irs.gov/forms-pubs/about-form-8332.
IRS.gov. "Form 886-H-EIC, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual." Accessed April 27, 2023. https://www.irs.gov/forms-pubs/about-form-886-h-eic.