Amend to claim parent as dependent

[FederalInquirer]

Hello,

I filed my 2017 taxes asap (to prevent fraudulent filings), and I got a refund already. My aunt, who is 77, retired, had moved to live with me by the end of 2016, and she lived with me all year in 2017. Because I'm not used to consider her as a dependent, I didn't include her in my return. Here is her financial situation:

a) her monthly income is about $500 from Soc. Sec.

b) in 2017 she took $1000 Min. Required Distribution from her 401K, so she makes about $7K annually

c) she doesn't pay to live with me, of course. I pay everything, all utilities, including cell phones, etc

When I add her as a dependent in my return, TurboTax shows the amended return has a refund of $3K

Does it look like she can be claimed as my dependent?

Is $3K in the ballpark of what is refunded for a dependent, or is it too much?

I'm in doubt if I should file an amended return to declare my aunt as a dependent, maybe it puts me at risk of audit?

Thanks for your input

Regards,

Rick

[pk · Accepted solution]

There are two parts  to this : --

          For you to claim her as a dependent, you having paid more than half of her  living expenses, should be possible-- what the additional refund would be depends on your exact facts and circumstances -- your filing status ( MFJ/MFS/S/HoH etc. ), your AGI etc.

            Because she has 401(k) --MRD, there must have been some taxes withheld -- she may have to file anyways to get the withholding back or clear her liability et

Need more details about the situation --- but if you have entered all the details correctly, then TurboTax should have  projected a correct figure.

If the facts are as you describe, don't worry about audit -- facts and corcumstances always  stand.

If you need more on this please ad your questions in commenst along with the details of the  situation

[FederalInquirer]

Hi PK. Yes, the 401K MRD had 20% tax withheld. She filed her return, and received the exact amount of the withheld taxes as a refund. As her filing said she's not a dependent, I guess that if I amend mine to declare her as dependent, her return would have to be amended also b/c then she'd be dependent in my return, even though her numbers won't change. Is that correct? Thanks

[pk]

that is correct -- both returns have to be amended