My grandchild lived with me for 6.5 months. Someone else has claimed him. What are my options?

[macuser_22 · Accepted solution]

If a dependent that you are entitled to claim has already been claimed by another taxpayer, your e-filed return will reject since the child's SSN has already been used (either intentionally or in error such as a mistyped SSN).

Your only recourse is to file a correct tax return, claiming what you are entitled to claim, then print and mail the return.

The IRS will process both returns and pay any refunds. Shortly (within a year) the IRS will mail letters to both taxpayers asking if their tax return was filed in error and suggesting that they amend if they improperly claimed the child.

If neither taxpayer amends, the IRS will send a second letter asking for each taxpayers proof that they are entitled to claim the dependent, such as proof that the child physically lived with them more than half the year. School records, child care records, household receipts, medical bills, etc., that show that the child lives with you should be retained.

The IRS will evaluate each taxpayers claim and award the dependent to one taxpayer, the other will have to payback any refund received plus interest and possible penalties. The taxpayer that had physical custody usually always wins.

Do not ignore the letters or you will loose.

[Bsch4477]

Send your return by mail with an explanation of why you qualify for the dependency.  The IRS will then sort it out. 

[Hal_Al]

If the child's parent also lived with you for part of the time and the parent's time with the child also exceeds half the year, the parent still has a higher claim than you do.