Rejection due to dependent claimed themselves

[Trnr395]

I have a client that has a dependant that worked around a month and filed a tax return somewhere else. Parents filed return with the dependent and know it is rejected due to dependant claimed on another return. I can't remember the exact procedure here...I believe I have to mail the return in instead of efiling and should there be a letter written along with the return stating that the dependant shouldn't have claimed herself. It wouldn't have made any difference on the dependents return because she was just filing to get the little bit that was take out for federal wages on her w2.

Thanks

[Catherine]

I have a client that has a dependant that worked around a month and filed a tax return somewhere else. Parents filed return with the dependent and know it is rejected due to dependant claimed on another return. I can't remember the exact procedure here...I believe I have to mail the return in instead of efiling and should there be a letter written along with the return stating that the dependant shouldn't have claimed herself. It wouldn't have made any difference on the dependents return because she was just filing to get the little bit that was take out for federal wages on her w2.

Thanks

I've seen it done a couple of ways by preparers. Your clients will definitely have to file by mail.

1. File by mail and don't send anything else. IRS may or may not catch the dependent. If they do, they'll send a letter and then you respond. The dependent meanwhile sends in a 1040X "un-claiming" self. The response letter refers to this 1040X that's been filed.

2. File by mail, include 1040X for dependent.

I'm not sure which way works "better" or "faster"; that may depend on exactly who gets what. And any refund will definitely get delayed.

The dependant may balk this year; being claimed as a dependent means no stimulus payment.

Catherine

[mcb39]

I've seen it done a couple of ways by preparers. Your clients will definitely have to file by mail.

1. File by mail and don't send anything else. IRS may or may not catch the dependent. If they do, they'll send a letter and then you respond. The dependent meanwhile sends in a 1040X "un-claiming" self. The response letter refers to this 1040X that's been filed.

2. File by mail, include 1040X for dependent.

I'm not sure which way works "better" or "faster"; that may depend on exactly who gets what. And any refund will definitely get delayed.

The dependant may balk this year; being claimed as a dependent means no stimulus payment.

Catherine

BUT, I had one today who came in with her mother. She was going to claim herself. She only made $964. I asked the Mom why she didn't claim her and Mom said "because she is 20!" I said, "but, who supported her and of course Mom did. Unfortunately, Mom's husband has already filed "on the Internet" so I filed girl without claiming herself and will have to amend Mom and her Husband after the load lightens. In any case, the daughter would not qualify for the stimulus rebate, would she? So, nobody will get that, but the Mom can sure use that lost exemption. Or, am I reading this wrong?

[LindaB]

BUT, I had one today who came in with her mother. She was going to claim herself. She only made $964. I asked the Mom why she didn't claim her and Mom said "because she is 20!" I said, "but, who supported her and of course Mom did. Unfortunately, Mom's husband has already filed "on the Internet" so I filed girl without claiming herself and will have to amend Mom and her Husband after the load lightens. In any case, the daughter would not qualify for the stimulus rebate, would she? So, nobody will get that, but the Mom can sure use that lost exemption. Or, am I reading this wrong?

Daughter won't get the rebate because she didn't make over $3000. Mom and Dad won't get it for her, even after they amend, because she is over 16 years old. Daughter may get it on 2008 return, if she has enough income and claims her own exemption.