Turbo tax deluxe added dependents to my return even though I said I wasn't claiming them. I've done this every year the last 7 years, why did it list them this year?

Forum|Forum|4 years ago
February 27, 2022
5 replies
8 views

My status is MFS and my spouse claims the dependents. I have always kept my dependents in my info, but have always answered the question that I am NOT claiming them. However this year they ended up on my form 1040. I didn't deduct childcare expenses nor did I have a child tax credit, so why would I even have them on my return? Did something change in the software to let this happen? Sounds like an improvement opportunity for TT. Now as I understand it, I have to wait until at least my returns are accepted and possibly deposited. File by mail an amended return, get that accepted, then my spouse can file by mail because that efile return got rejected because the dependents were on mine. Do not know if there is a better route to take, contact the IRS?

TurboTax Deluxe Online

xmasbaby0

Level 15

If you transferred a 2020 tax file then all of 2020 data transferred over including the dependent information. If you are not claiming your children why are they even on your return? Do you live apart from your spouse and have a signed agreement 8332 with him that allows you to file as HOH?

Why are you and your spouse filing separate returns? That is usually the worst way to file. You lose a lot of child-related credits.

If you were legally married at the end of 2021 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,100 (+$1350 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

If you and your spouse are determined to file MFS then your spouse will now have to mail his return. He cannot e-file. Calling the IRS will not help with that.

Another possibility---amend your MFS return to file jointly with your spouse.

https://ttlc.intuit.com/questions/1899507-how-do-i-amend-a-separate-return-to-married-filing-jointly

It is not easy to compare MFJ to MFS using online TT but you can do it. Since you only get one return for each account and user ID, you have to use 3 accounts and user ID’s—one for MFJ and two for each of the MFS returns. Compare, choose, and file—and pay—accordingly.

It is much easier to do this comparison using the desktop version of TT installed from a CD or downloaded to your own computer. You pay once for the software and you can prepare multiple returns easily, and it has a “what if” feature that allows comparisons.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

bmoss5Author

Level 2

Thanks for the quick reply with good information. I have good reason for filing MFS, and my case it works out in uniquely in our favor. My question isn't very clear, but something different in the software added my dependents to the return and I didn't notice as I have prepared the returns the same way for many years. This caused my spouse to get rejected, and in that case the Child tax credits are applicable whereas in mine they are not. Regardless, I wanted to ask if my suggested amendment route is the best? Which is wait for federal and state deposits (or acceptance?), submit amended return, wait for that acceptance, then my spouse can file by mail. And if calling the IRS could make this more efficient.

xmasbaby0

Level 15

You need to wait for your first return to be fully processed and then you can amend. Your spouse does not have to wait for any of that. Since he can only file by mail now, he can mail it whenever he has his return ready to put in an envelope.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses. Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.