Some filed my dependent after I did. Was I in the wrong? What happens now

[katiejames9584]

I filed early and my taxes were accepted on the 25th of January. I just got word that my child's aunt claimed her yesterday from her. Now, her aunt got custody of her In October of 2021 because of circumstances. However, I supported her in 2021 from Jan-Oct and was also receiving the advanced child tax credit. She said I wrongly Claimed her. Was I in the right to claim the dependent since she lived with me and I supported her most of the year? Or does the fact she got custody in October matter?

[KrisD15]

Rules for claiming a dependent:

If the child lived with you more than half the year, it would seem that you would claim tat child as a dependent for tax year 2021. 

Below is a link to an IRS Interactive Interview which can give you more insight. 

• Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
• Are you the only person claiming them? This requirement commonly applies to children of divorced parents. Here you must use the “tie breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage and residency requirements for claiming a child.

IRS INTERACTIVE INTERVIEW

[Mike9241]

if she resided with you for more than 1/2 the year, assuming the child meets the relationship, age (under 19 or under 24 if full-time student),  the support rule is that the child did not provide over 1/2 their support, not whether any other person provided over 1/2 their support you would be the person eligible to claim the child.

do nothing to change her return.  eventually, the IRS will send both you and your aunt a letter asking for them to amend their return to remove the dependent. you should do nothing. if your aunt does nothing, then the IRS will send a second letter asking for proof.  The notice should specify what the iRS wants as proof. this would likely include documents to show the child lived with you for more than 182 nights. 

[katiejames9584]

Well, she was definitely my dependent and fell under all that. Do you know if my taxes will be affected? Like if the IRS will decide to reject them? Or will they just reject hers and make her re-file without the dependent? I know I filed first. Not sure if that matters

[MarilynG1 · Accepted solution]

If you filed first claiming your dependent, the person to file second with the same dependent, will have their return rejected.

At that point, they can choose to mail in their return with the dependent, or efile without the dependent.

If they mail their return and claim the same dependent as you, the IRS will contact both of you eventually to determine who had the rightful claim, so be sure to save any school or medical records to back up your claim. 

The one who did not will have to repay that portion of their refund.

Click this link for more info on Someone Else Claimed My Dependent.