Question

[lolo97]

My aunt who has been claiming me and my daughter who is 4 since 2015 and this year she was allowing me to claim my daughter since I started a stable job  well we didn’t know the AGI for earned income for a child and the care credit is only approved if you made over 2,300 ? I believe and that technically she should’ve claimed us again for having a higher AGI.So my aunt wants to know if can she keep me as a dependent on hers which she sent off her return and already was refunded without it affecting my return of claiming my daughter and putting my aunt who has been financially helping me and with my daughter this year ?. Or take me off completely and if possible can she claim us next year without it causing  red flags for dropping us and the inconsistency? She’s willing to fill out a 1040x but is trying to avoid the headache and paper work if needed

[JohnB5677]

Based on what you've told me, your aunt did provide over half of your daughter's and your expenses.  So it would be proper for her to claim both of you.  It's also okay to leave it as it is.  The guidelines state who you can claim but there is no rule if you choose not to.  There would be no red flag if you waited until next year.

If both of you have filed, you will both have to amend your return.  You can have your aunt claim both you and your daughter as dependents.  You would amend your return to reflect that you did not claim yourself nor your daughter.

Here is some guidance in case you want to amend your returns.

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” 

If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040X for each tax return you are amending.

Amend ONLINE    OR     Amend CD/Download       Amend 2016 - 2019

[Opus 17]

How old are you?

Your aunt can't claim you as a dependent unless you are either

a) under age 19

b) under age 24 and also a full time student

c) any age, but you earned less than $4200 of taxable income and she paid more than half your living expenses.

Either you or you aunt can claim your child as a dependent if you all lived together, except that you must claim your child if your adjusted gross income is higher than your aunt.  If your aunt's income is higher than yours, then you and your aunt get to choose who claims the child. 

[lolo97]

Yes she has provided more than half. Okay cause she was refunded for what she paid in this year and claiming me. And on my taxes it asked if a relative helped with expenses for m daughter I put yes and that it was more than half of the year and it asked the amount she provided and her social and name.  It was still refunding me a little bit back for having my daughter just not the full amount of EITC so I’m just making sure we’re okay this year with the way we did it. And what to expect for next year just in case we had to keep it how it always has been and I’m 22 not a full time student my AGI was 1,753 for the year. But by 2020 for next year which I’m only part time I might be above the bracket to claim my daughter for the full EIC. Of course my aunt makes more than me but she was just trying to settle things this way since I started work consistently and thought it would be okay either way. Thanks for the advice tho guys 🙂

[Opus 17]

You seem to be in a section of the interview for multiple support agreements or for custody agreements, which don't apply in your situation.  If your aunt has more taxable income than you, and listed your child as a dependent, then you should delete your child completely from your return.  

[lolo97]

She didn’t claim my daughter only me as a dependent this year 

[lolo97]

I will call TurboTax to let a agent look at the return before submitting it sorry if I was concussing 

[Opus 17]

You're still in the wrong section then.  If you want to claim your child as a dependent, you should not be asked if some other relative provided support.  The only questions you should be asked are "did your child live with you more than half the year" and "did the child earn more than half their own support."

Turbotax changes the IRS question "did your child live with you more than half the year" into the question "how many months did your child live with you" so you need to answer at least 7, or probably 12 if you all lived together this year.  

You might be asked about the child's other parent, but you should not be asked about support provided by other relatives unless you answered a previous question wrong and got diverted into a different section of the interview.

Try deleting the child completely and then re-add her.

[lolo97]

Okay and I’m not sure I put she lived with me all year because yes we all live together and that she did NOT financially support herself. Well me be claimed as a dependent on my aunts it said I can’t claim my daughter for any deduction this year but I will start it over and delete my child off. 

[lolo97]

Also I’m claiming under single

[lolo97]

So if my aunt fixes her taxes on a 1040x and puts my child because I think that will benefit us from what every one is saying and makes more since for the living situation. Will an amended return automatically be checked for the dependency check ? So she can have the documentation ready to make the process faster.