Claimed my girlfriend's kids as dependents and used them for EIC...how much trouble am I in?

[Anonymous]

For the past 5 years I have claimed my girlfriend's 2 sons (along with my son) as dependents and I mistakenly used them for EIC and the Advanced Child Tax Credit, etc.  My girlfriend doesn't work and I support all of us.  We have lived together every day for the past 5 years.  I thought I was filing my taxes correctly because I asked my father about this from the very beginning, he's a retired IRS Agent.  I thought everything was fine and done the way it was supposed to be done until I got a letter from the IRS this year asking for documentation for the kids to support me claiming them for EIC.  I began researching this and quickly realized my huge mistake and that they're supposed to be Qualifying Relatives.  So after talking to the IRS yesterday I know what's going to happen to this year's tax return...but what about the past 5 years of returns?  What about the Advanced Child Tax Credits and stimulus payments I got for the kids because of this?  My girlfriend could have gotten those things instead so it's not like we got money we shouldn't have...it just went to the wrong person.  Also, I did taxes for my girlfriend the other day to check...she had no income, just had the 2 kids, and she ended up getting a $6,600 refund (if we file the return)...could this possibly be correct?  Thanks!

[Cynthiad66]

Yes.  The mother can claim them and get the refunds.

Don't worry about the pat 5 years, the IRS will make a decision on that and decide if hey will make those adjustments.  

Since you spoke with the IRS and they have decided to not let you claim the dependents and all of the associated credits and you are sure that this is the result, you can prepare a return for you domestic partner.  Be sure though because you do not want her to end up claiming the same children and your case is still pending.  Let your 2021 case be finalized with the IRS first then file for her.

If the IRS decides to go back 3 years then you can file her returns at the same time.  You just don't want to further complicate things.

[Anonymous]

I was already planning on waiting until my tax return is finalized before we file one for my girlfriend.  I even asked the IRS yesterday if I needed to submit an amended return with the 2 kids in question removed from my return.  I've read enough in the past week to know dependents on two different returns is just begging for trouble.

Thanks for your assistance with this!