Is it legal to do this

[helow]

I filed this Tp 2009 tax. He claimed all his kids including one who is full time student who made about $7K. He received his refund. After weeks, TP came again with his son to file his son's tax. The son had 1099 and has to pay over $1K. The father did not like this and asked me to amend his previously filed tax to remove the son so that the son can claim himself. I told him that I would think about the legality of this. My research shows that the father's refund would not change, he does not to return any monies. My question is can I legally do an amendment so that the son can "avoid" paying the $1K? He would pay far less that this. I am just not comfartable doing that until I am certain it is legal. I need your help.

Thanks

Helow

[mcb39]

It is pretty unlikely that the son is providing over half of his own support on $7000, but could be possible. I am more concerned with the fact that if there are any education credits on the father's return, you have to remember that the education credits follow the exemption regardless of who pays them. Without knowing all of the facts, it is hard to answer, but my thought is that either the father takes the deduction or nobody does.

[kcjenkins]

Well, we don't know enough details to say for certain, but it would certainly be legal if the boy provided over half his own support. Which at 7K is possible. My biggest question would be 'where did the son live?' If he lived at home, that alone is support from his parents. But yes, if the son did in fact provide at least half his own support, then it would be legal to amend it, in fact it would be the right thing to do. I suggest you do a support worksheet to determine that.

[David1980]

Income can be pretty deceptive in trying to determine who provides over half the support of a student. Thanks to student loans, the student can spend thousands of dollars on their own support that does not show up as income (as the student loans a student uses for themself is support provided by the student.)

So I would look at that aspect. Ultimately it comes down to whether the student provides over half their own support or not. If they do then they shouldn't be claimed as a dependent. If they do not, then they cannot claim their own exemption. There's a worksheet in Pub 501 that covers the common support items.

[helow]

The son received scholarship and did not pay for any of his education expenses. He lives with his parents and his father drives a cab. Father's gross income was $32K this year. I also understand there is another son who is 23, full time student and earned $15K. His tax return, done by someone else, shows that he claimed himself. I feel like I am helping someone to avoid his tax liability but I want to help this guy if an amendment can be done.

Thanks

Helow

[imjulier]

I can't believe that the father would not benefit by a lot more than the $1,000 taxes owed since maybe he can claim the Am. Opp. credit and qualify for the refundable portion. But as stated above, look at the dependency rules and act accordingly.

Julie

[imjulier]

Oh, duh, scholarship. Didn't see that before. Sorry.

Julie