Someone is illegally trying to claim our 2 grandchildren. How do we proceed with trying to find out or protect ourselves on our taxes.

[ransombowhunter]

Our daughter (the mother of both children) has left both grandchildren with us since birth.

[xmasbaby0 · Accepted solution]

Someone else claimed my dependent and my return was rejected

If someone else claimed your dependent already, then your e-filed return will be rejected.  Print, sign and mail your own return which claims your dependent.  Mailed returns are processed differently by the IRS.  It will take some time (maybe even up to a year) but eventually the IRS will contact both parties and sort out who could rightfully claim the dependent.  The person who wrongfully claimed the dependent will face repayment of refund $, plus penalties.

[AnthonyJ]

Unfortunately, the only way you will find out if someone has truly filed a tax return with your dependent child listed on their return is when your e-file is rejected, or if you submitted a paper return, you receive a letter from the IRS advising your child was claimed on another return.  The other party will receive the same letter as well.  

These letters will eventually require both parties to provide proof they supported and have the legal right to claim the dependent on their return.

Hope this helps.