If you have already filed your tax return, she is going to have to mail hers if you did not indicate that you could be claimed on another return. If you have not submitted your return yet, you can make the change. If your pattern sales were as you described them, you don't have to report the income or file a tax return to either the IRS or your state. You certainly can report it on your tax return though. As long as you have the records of the costs you paid for those patterns and the costs are more than the income you received, it is not taxable income. If you were selling the crafts that you made, you would have hobby (you can't deduct or adjust the income for the related expenses) or business income. But, if you make crafts to give away to friends and family, you are not deriving income from the activity. If you choose to report it and then offset it, you are still reporting 0 income -so the tax effect is the same. If you have not filed (or your return gets rejected), hold up and let your daughter e-file first. After her return is accepted, and if you still want to file, mark the box that indicates you are claimed on another return and then file your return. If you mark that box, your return won't be rejected.
If you have filed, there is a possibility it will get rejected. If so, she can still e-file. But if it is accepted without marking the ''someone else can claim'' box, her return will be rejected if she claims you - the rejection code will reference an SSN already claimed. If you amend and the amendment gets processed, that may allow her to e-file. This is the first year TurboTax is allowing amendments to be e-filed, so that may allow her to still be able to e-file after your amendment gets processed. The amendment forms will be available later this month. I would not resort to filing by mail until all other options have been exhausted. The IRS is already behind and the recent legislation is only going to put them further behind. And if she has a refund coming, mailing her return is going to cause that refund to be delayed. @emilar59
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