@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.
