Parent incorrectly claimed adult child as a dependent on their return - what do we do?

[Chrisgmitchell]

My ex-spouse recently claimed our adult daughter as a dependent on her return.  Problem is my daughter is age 24, works full-time, was NOT a full time student in 2019 and got zero support (of any kind) from my ex-spouse.  So my ex-spouse had no right to do this.     We found this out when my daughter filed her own return (not mine) electronically in March and the IRS rejected it as it said someone else had claimed her SSN already.  My ex-spouse feigned ignorance and said she would get it corrected and re-file but because of her never-ending behavior problems (I'll skip all that) it's unclear if that has actually happened.  This has also prevented my daughter from claiming the $1200 government stimulus money because the IRS thinks she was a dependent.  I suspect it also fraudulently allowed my ex-spouse to get a higher stimulus check then she deserved by claiming that dependent deduction.  We decided to wait a while and see if the IRS had "unlisted" my daughter as a dependent.  Yesterday we re-filed my daughter's taxes electronically.  It rejected again.    I'm guessing now she should just file by mail and hope for the best???  Her by-mail return would basically be no different from the rejected return.  We are not going to allow my ex-spouse to get away with claiming her when she should not have.     I can only assume that the IRS will send my ex-spouse a letter asking her to explain what happened???  Anybody have any experience on a situation like this???    I guess this will all get ironed out eventually but I suspect it may be months before my daughter can get that $1200 stimulus from the government because on top of all this she got laid off from her job and really needed the money!

Thank you for any insight

[CatinaT1]

She will have to file by mail.  There will be no way to efile since she has already been claimed.  She will eventually get the stimulus payment, but may have to wait until filing her 2020 return to get it.

[Opus 17]

Your daughter must file by mail. Even if your ex filed an amended return, it will not clear the e-file system to allow your daughter to e-file.

Then, if your ex does not file an amended return, both your ex and your daughter will get letters from the IRS asking them for proof of their situation.  This normally happens 6 to 9 months after the April 15 deadline; I have no idea how long it will take this year. Which ever taxpayer is determined to have filed an incorrect return will owe repayment of any excess refund with interest and possibly with penalties.

[Critter-3]

Ok ... cool your jets.  Here are the facts :

1) no matter what the ex does on their return all your daughter can do is mail in her 2019 return and wait forever for it to process ... the virus has the IRS 3 - 6 months behind in processing mailed in returns.

2) the ex could not get any extra stimulus for a dependent over the age of 16 so they got nothing for this error and has to pay back the $500 she did get when the IRS catches up with them

3) if the IRS doesn't release the stimulus check to your daughter after processing the 2019 return then she can get it on the 2020 return she files next year... so she doesn't lose it but merely needs to wait a bit

[Hal_Al]

Q.   I'm guessing now she should just file by mail.

A. Yes, it's that simple.  Do not attach any explanation, just mail the return with copies of her W-2.  If the mother doesn't file an amended return, within the next several weeks,  the IRS will send her a letter asking her to amend.  If she doesn't amend, after getting that letter, then both the ex and the daughter will get letters asking then to defend their position. 

Q.  Anybody have any experience on a situation like this?

A. It's very frequent  and the answer is the same, for everybody; paper mail your return. The stimulus incentive has led to big increase in cases (mostly young people perfectly content to let their parent claim them in the past, but not now with $1200 on the table).  You are correct, turning 24 in 2019 and having more than $4200 income, makes her ineligible to be a dependent. Student status is not relevant at age 24. 

Q. I suspect it also fraudulently allowed my ex-spouse to get a higher stimulus check?

A. No. Only children, under 17 qualify for extra stimulus.  She did get a $500 other dependent credit if she had a tax liability (non refundable), when she filed her return. Starting in 2018, the other dependent credit replaced the old ~$4000 dependent exemption (deduction).

Q. I suspect it may be months before my daughter can get that $1200 stimulus from the government.

A. Yes; it will most likely be next year.  

"In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit. The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount". For more info, see https://ttlc.intuit.com/community/taxes/discussion/re-if-i-removed-my-25-year-old-as-a-dependent-and...

[Chrisgmitchell]

thank you very much