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Level 2
February 15, 2021
Question

penalty after amending

  • February 15, 2021
  • 4 replies
  • 25 views

Trying to decide if it's worth amending my 2019 returns to remove my 2 dependent children so they qualify for educational tax credits. I filed 3 separate 1040s for 2019--amending would result in additional refund amounts of about $1400 and $500 for the 2 children respectively. However, I would have additional federal tax due of $260. How do I calculate the late fees/interest that I would also get hit with?  

    4 replies

    Mike9241
    Level 15
    Level 15
    February 15, 2021

    Under IRC code section 25A(g)(3) no credit is allowed to an individual who can be claimed as a dependent on another's return.  your dependent children are not entitled to claim the credit.

    Mike9241
    fanfare
    Level 15
    February 15, 2021

    your kids' 1098-T goes on your tax return and you collect the tuition and expenses credits.

    If you didn't do it that way you only have to amend one tax return, yours.