Dependent has a child

[debbie071]

My sisters' 20-year-old daughter lives in the home with her (she also has a baby). Her daughter worked part-time in 2021.  She made $2900. She filed her taxes as single and claimed her child as her dependent.  Can my sister claim her daughter as a dependent on her tax return?  She supported both of them.

[JohnB5677]

No, if the daughter claimed the child as a dependent, she would have claimed herself as a dependent.  

There are three alternatives.  

• Your sister can prepare her return claiming both the daughter and child on her return. 
  •  It would be rejected for E-file, but she could mail it in.  
  • The IRS would send both your sister and the daughter a notice, and through a series of questions determine the correct solution.
• Or, the daughter could file an amended tax return.
  • However, time is short and this would probably take longer.
• Finally, Your sister could just let it go.