Here's my situation:
Daughter: filed in February and on her taxes noted that she could not be claimed as a dependent. However, this was wrong and the filing needs to be amended.
Mother: Filed late and return was rejected when she tried to claim daughter as dependent.
The goal here is to rightfully claim the daughter as a dependent so my thought is we will amend her filing to be claimed as a dependent and send both filings to the IRS.
The big question is the daughter received her stimulus money check and deposited it. If she is no longer independent from her mother will she have to pay the stimulus check back in full? I know her tax liability may change slightly but we are worried about having to pay back the stimulus and then it may just be worth not claiming her as a dependent and getting that credit for the mother.
@loganl wrote:
it may just be worth not claiming her as a dependent and getting that credit for the mother.
It doesn't matter whether the mother claims the daughter or not. What matters is that the mother can claim the daughter. The question on the tax return is whether someone can claim you as a dependent. If the daughter can be claimed as a dependent, she must indicate that on her tax return, whether or not she is actually claimed. Also, if she can be claimed as a dependent she is not entitled to a stimulus payment, even if she is not actually claimed.
@loganl wrote:
we are worried about having to pay back the stimulus
There is apparently no legal obligation to pay back an incorrect stimulus payment.
@loganl wrote:
The goal here is to rightfully claim the daughter as a dependent so my thought is we will amend her filing to be claimed as a dependent and send both filings to the IRS.
The daughter has to file an amended return to indicate that she can be claimed as a dependent. Even after she does that, the mother will not be able to e-file. The mother has to print her tax return claiming the daughter, sign it, and file it by mail. There is no need to wait until the daughter's amended return has been processed.
Do not mail the mother's tax return and the daughter's amended return together. Mail each tax return in a separate envelope.
Why does the mother have to refile if she initially claimed her as a dependent in the first place? I have a similar situation but I shouldn't have been claimed which I was and I answered yes to the dependent question.
The mother does not have to refile. I didn't say she has to refile. In the case discussed above, the mother has not yet filed at all, because her e-file was rejected. When an e-filed tax return is rejected, that return has not been filed. So she still has to file for the first time, and she has to do it by mail. She doesn't have to change her tax return. She can file it as-is, claiming her daughter as a dependent. But she hasn't filed it yet.
Your situation is not quite the same. You have posted your own questions about the specifics of your situation, and you have received advice in response to your questions.
Ohhhhhh. Thx for no advice other than that wasn't what you said.
Back to the original post, are you saying if a person can be claimed as a dependent they must check yes even if they know they won't be? Why would anyone do that? So that they purposely would not receive a stimulus check?
Q. Are you saying if a person can be claimed as a dependent they must check yes even if they know they won't be?
A. Yes. The wording on the question is CAN be claimed, not are or will be claimed.
Q. Why would anyone do that?
A. Because it's the law. If you qualify as someone's dependent, you're not allowed to "claim yourself" to get tax benefits or a stimulus check.
Q. So that they purposely would not receive a stimulus check?
A. Yes, they're not entitled to a stimulus check, under the law, if you are or can be claimed as a dependent.
Your situation is common, this year, and has been addressed in this forum, before. See
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-dependency-question/01/1486837#M149078 amend to uncheck can be claimed box
https://ttlc.intuit.com/community/taxes/discussion/re-if-i-removed-my-25-year-old-as-a-dependent-and-then-she-filed-would-she-get-a-stimulus-check/01/1580404/highlight/false#M563176 Parents amend to unclaim
https://ttlc.intuit.com/community/college-education/discussion/i-am-a-college-student-who-filed-my-own-taxes-for-2019-i-was-not-claimed-on-anyone-else-s-taxes-am-i/01/1508012/highlight/false#M32795 student claiming himself