I have legal documentation to claim my child but my parents claimed, and now my return was rejected. what do i do ?

[JohnB5677]

This happens frequently.  You have three alternatives.

1. You can have your parents amend their tax return to uncalm the dependent. 
   1. The amended return will take a while to process.
   2. You will have to go on extension until their return has cleared.
   3. You can then submit your return with your child as a dependent.
2. You cannot E-file with your child on both returns.
   1. But you can mail your return to the IRS.
   2. When the IRS gets your return, 
      1. They will send a tax notice to both you and your parents.
      2. Both of you will have to fill out documents that show why why you claimed the child.
      3. They will determine the correct filling.
3. Do nothing.
   1. Submit your return without your child on it.
   2. Talk to your parents and work it out.

Please contact us again with any additional questions or to provide some additional details.

[Hal_Al]

If someone else claimed your child inappropriately, and if they file first, your return will be rejected if e-filed. You would then need to file a return on paper, claiming the child as  appropriate. The IRS will process your return and send you your refund, in the normal time. Shortly (up to a year) thereafter, you'll receive a letter from the IRS, stating that your child was claimed on another return. It will tell you that if you made a mistake to file an amended return and if you didn't make a mistake to do nothing. The other party will get the same letter you did. If one of you doesn't file an amended return, unclaiming the child, the next letter, from the IRS, will require you to provide proof. Be sure to reply in a timely manner.

Winner gets the tax benefits; loser gets to pay the IRS back with penalties and interest.  The custodial parent almost always wins.  

If the child lived with both you and the grandparents, for more than half the year, either of you can claim the child (but, you as parent, have first priority).  It may be worthwhile to prepare returns both ways to see which way the family comes out best. 

[Mike9241]

the question is who under the tax laws is legally entitled to claim the the child. The legal documents granting you custody don't mean anything when it comes to the tax laws

 these are the rules

Qualifying child – and eligible to be claimed as a dependent the rules are:

• Must be a US citizen, resident alien or national or a resident of Canada or Mexico
• Related to you - son. daughter. stepchild, eligible foster child, or a descendent of my of them; brother, sister, half-brother, half-sister, stepbrother, stepsister or a descendent of any of them. Adopted child if legally adopted or an individual lawfully placed with the taxpayer for legal adoption. Eligible foster child is one placed with the taxpayer by an authorized placement agency or by judgment decree or order of any court with jurisdiction.
• Must be either: a) under 19 at the end of the year and younger than the taxpayer claiming or b) under 24 at the end of the year and a full-time student. A full-time student is one who is enrolled full-time in school (but not online or correspondence schools) during any part of 5 calendar months during the calendar year or took a full-time course of institutional on-farm training under the supervision of an accredited agency.
• Same principal abode as you for more than ½ the tax year. Temporary absences are ignored.
• Hasn’t provided over ½ their own support. Taxable or nontaxable scholarship payments are ignored in determining support.
• Hasn’t filed a joint return – unless there is no tax liability.
• If a qualifying child of more than one person there are tie-breaker rules

if they and you qualify to claim the child based on the above tax laws, under the tie-breaker rules, you as the parent have priority.

since they already claimed the child you would have to file by mail.