If someone else claimed your exemption
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 exemption
if 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 exemption 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 exemption, 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.
There is a rule that says IF somebody else
CAN claim you as a dependent, you are not allowed to claim your own exemption.
If you have sufficient income (usually more than $6350), you can & should
still file taxes; you just doesn’t get your own $4050 exemption (deduction). In
TurboTax, you indicate that somebody else can claim you as a dependent, at the
personal information section.
Even if you had less, you are allowed to
file if you need to get back income tax withholding. You cannot get back social
security or Medicare tax withholding.
