We were granted legal guardianship of a 17 year who lives us. I am told that someone else plans on claiming her. Illegally. What can we do to ensure we can claim her?

[kevingreenan]

Court ordered. She lived with us for all of 2016. She was taken away from her mother due to lack of providing a home, food,care etc. I'm told her mother is planning on claiming her despite having no legal right. If her mother files 1st will I be unable to claim her? Is there any paperwork I can file now to ensure that she is a dependent of mine.

[DoninGA · Accepted solution]

If someone else files a tax return claiming her personal exemption and the return is accepted by the IRS, then you will not be able to e-file your tax return also claiming her personal exemption.  You will need to print and mail your tax return and still claim her as your dependent.  If your return has a tax refund the IRS will pay the refund.

Within a year the IRS will send both parties that claimed the personal exemption a notice that another taxpayer has claimed the exemption on a tax return and that if a mistake was made, then file an amended return removing the personal exemption.  If neither party files an amended return, then the IRS will send another notice requiring proof that you were entitled to claim her as dependent.  Respond to this notice with the proof requested.

The party unable to prove they were entitled to the personal exemption gets to repay any tax refund received along with penalties and interest.