Removing a dependent

[lisa27616]

I have sent an amended return to remove a dependent. How long will it take for a response from the IRS? Will I be penalized in some way, other than paying the additional tax money, for needing to remove her for that reason?

[JohnW222]

No, there won’t be any penalty, since you filed and paid your balance-due amended return prior to the extended filing deadline.

Generally, an amended return takes 6 weeks to process, but with the Coronavirus outbreak, it’s impossible to tell how long it would take. 

According to the IRS's IRS urges taxpayers to use electronic options; outlines online assistance page, the IRS isn't currently processing mailed paper returns, and amended returns must be filed on paper and mailed. 

[Hal_Al]

If you're removing the dependent so that the dependent can get the stimulus payment; it's not clear at this time whether that will work.

Instead the dependent may have to wail til next year.  This basically means that there may be no need to remove the dependent, from your 2019 return.

"In essence, the stimulus check acts as an advance of a person's 2020 income tax refund. This means when he prepares his 2020 income tax return, there will be a line to include the section 6428 credit. The credit on his 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount he received as a stimulus check is less than the credit he is due, the difference will be included as part of his 2020 refund. If he has been overpaid by receiving the stimulus check, however, he will not be required to return any excess amount".

Reference: https://www.dailylocal.com/news/coronavirus/what-does-the-stimulus-check-mean-for-your-taxes/article...

[lisa27616]

Thank you. I actually just sent $500 and would owe them just about another $,1500. When I mailed my amended form in I sent that check and indicated I would set up a repayment plan when they processed my amended return. Thanks to the stimulus check I’ll be able to pay them back immediately, but at this point I don’t think there is a way for me to pay the difference until they process the amendment. Is there?

[lisa27616]

While that would be a benefit to the dependent, the larger issue is that after filing it I realized the financial support being 51% or more of her expenses was not accurate since her school scholarship was so large she didn’t need that much help from us as in previous years.