Should I amend my return? My parents are filing 2021, can claim me as a dependent. They owe, have penalties, and it is causing me to owe. Should they just take the hit?

[hannahh620]

Would it be better for us to take the hit instead of my child? We are just filing 2021 taxes. We could claim our child as a dependent. They filed their return as no one can claim them as a dependent.  They will end up owing state and federal in addition to penalties/interest. We will owe money, with penalties, interest, late filing fees. Should we just take the hit?

[Bsch4477]

Your post is not clear whether the parent or child is posting. But in either event, if the child CAN be claimed as a dependent then the child must on their return say that someone else can claim them even if the parent chooses not to claim them. 

[xmasbaby0]

Your question is confusing----are you the parents or are you the dependent, qualified child or qualified relative?

The rule is that if you CAN be claimed as a dependent on someone else's tax return, on your own return you are required to say that someone else can claim you as a dependent.   Not sure what "hit" you think that will cause for you---unless you claimed a stimulus amount that you were not entitled to receive for 2021.   Your parents do not "have" to claim you---but your own return must say you can be claimed if they could.

If you are the parents and you can claim your child for 2021, you get a $500 credit for other dependents if the child was too old for the child tax credit in 2021.   For 2021, you could get the child tax credit for a child younger than 18.  A child 18 or older got you the $500 credit for other dependents, and --- if you claimed the recovery rebate credit, $1400 for each spouse and $1400 for each dependent claimed on the return.

[xmasbaby0]

And...some of the post above sounds like you are the child and some of the sentences read as if you are the parent.   If you are the dependent child and you filed incorrectly for 2021, you can amend your return and change the way you answered the question in MY INFO when it asked if you could be claimed as someone else's dependent.  If you received stimulus money for which you were not eligible, you will have to pay it back.

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

Do not expect quick results from amending. It can take four months or more for the IRS to process an amended return.  

You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1