Dependent status change

[ChrisM6]

Like for 2019, I claimed my daughter (age 19) as a dependent in 2020.  After I filed my return in Feb 2021 (it was accepted) , I discovered her refund is way higher if I don't claim her.  But I tried to file her return where she isn't a dependent but it was rejected because I claimed her as a dependent on my return.  So, I need to amend my return and not have her as a dependent.  But I can't do that until I get my refund, then I can file my amended return.  My question is should I mail in her return now or wait and e-file her return after my amended return is filed?  However, my amended return won't be processed for 16 or so weeks after I am able to send it in so will her return still be rejected even if I mail it in?  If I should mail in her return, when should I mail it? 

[JoannaB2]

When you received your refunds, you can amend your 2020 income tax returns and delete your daughter as dependent.

Your daughter may file as individual to claim her refund, if any, and recovery credit, if qualified, but she can't e-file her income return.  Both of the returns, your (1040X form) and daughter's 1040 form,  must be mailed to the  IRS.  You may have to amend your state income tax, and your daughter has to mail her state income tax as well..

[ChrisM6]

Thanks for your answer.  But I read that for 2020, form 1040x can be filed electronically.  Why do you say I have to mail it in?  Also, can I mail her 1040 return in now or do I have to wait until I get my refund and file my 1040x?  Before my 1040x is processed, won't the IRS reject her return because I claimed her and she says she wasn't claimed?

[ChrisM6]

Thanks for your answer.  But I read that for 2020, form 1040x can be filed electronically.  Why do you say I have to mail it in?  Also, can I mail her 1040 return in now or do I have to wait until I get my refund and file my 1040x?  Before my 1040x is processed, won't the IRS reject her return because I claimed her and she says she wasn't claimed?

[MaryM428]

We advise people to mail in the return when someone else has claimed a dependent and a efile is rejected.  This happens when one parent claims a child and the other person was entitled to claim the dependent that year.

  In your case, an amendment will be the correct way to go.  No one is going to say that they are entitled to claim her.
 

Amend will not be available until the IRS releases Form 1040X.  We expect the form to be available in TurboTax in mid to late March.  You do not amend until your original return has been processed.  When you start your amend, TurboTax will show your refund amount as zero.  Then that amount may change as you amend your entries.  

When amend is ready, go into TurboTax and follow the instructions for amend.  You will delete your dependent in the federal section, then walk through all of the amend questions.  Then you can efile your return.  When your amend is processed you will be able to efile for your daughter.  Her return efile will be rejected until the information is corrected and the IRS no longer has her as your dependent.  

You have 3 years from the date you filed your return or 2 years after you paid the tax due (whichever is later) to file an amendment.