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Level 2
April 10, 2020
Solved

Dependents

  • April 10, 2020
  • 5 replies
  • 20 views

My significant other's mother claimed him as a dependent whenbhe clearly does not meet the statndards. He contacted his mothers tax preparer and she stated it was fully legal and that he is saving his mother money by doing his taxes as a dependent. His moms tax preparer convinced him and his mother to keep taxes as is so his mother would not have to pay the 1800 back and to just give him the stimulus check she would be receiving.  My significant other lives in his own apartment and makes more than 23k a year. Will this come back to haunt him later? Was this fraud? Its alarmaing since we have a child we cant afford getting fined by the IRS

    Best answer by Hal_Al

    The support issue is secondary.  He does not live with his mother and makes more than $4200, so, as you said, he clearly does not qualify as his mom's dependent*.

     

    With the tax law change, effective 2018, most dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. So, there is increased incentive for doing what they're doing.  But there's increased incentive for IRS enforcement, as well. The fall back will be mostly on the mom,  as the son has nothing to pay back. $1800 sounds like she claimed EIC, and that is a serious  error (the other dependent credit is only $500). 

     

    *If he moved out of her house in 2019 and was a full time student, or under 19,  or if he only lives in his own apartment because he is away at school, the answer could be different. .

     

     

     

     

    5 replies

    AmyC
    Level 15
    April 10, 2020

    Let's get the facts straight and find out. First, Support worksheet  to see if she supports him. If she is flying him around the world on fabulous vacations and paying for things, she could support him.

     

    Once you know if she supports him, then you can move to can she claim him. Use this short, anonymous, online IRS quiz, Whom May I Claim as a Dependent?

     

    She won't get stimulus money for him since he is over 17. He would have gotten stimulus money if he had filed his own return.  That is a big difference, $1,200. Please see Impact Payment Calculator.

     

    He can file an amended return and claim himself, the IRS will send him a stimulus check later and a letter to his mom wanting their money back. 

     

    I don't know who is claiming your child, he would get Earned Income Credit and Child Dependent Credit on his income if he was claiming the child.

     

    Good luck!

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    Level 2
    April 10, 2020

    His mother definently does not support him and between her tax preparer and herself they have convinced my significant other to file his taxes as a dependent.  Will he be audited for this down the line or would this fall back on his mother and the tax preparer? 

    Hal_Al
    Level 15
    Hal_AlLevel 15Answer
    Level 15
    April 10, 2020

    The support issue is secondary.  He does not live with his mother and makes more than $4200, so, as you said, he clearly does not qualify as his mom's dependent*.

     

    With the tax law change, effective 2018, most dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. So, there is increased incentive for doing what they're doing.  But there's increased incentive for IRS enforcement, as well. The fall back will be mostly on the mom,  as the son has nothing to pay back. $1800 sounds like she claimed EIC, and that is a serious  error (the other dependent credit is only $500). 

     

    *If he moved out of her house in 2019 and was a full time student, or under 19,  or if he only lives in his own apartment because he is away at school, the answer could be different. .