Can Someone File My Child Without Permission?

Tax season often raises questions about who can claim a child as a dependent, a critical issue for parents and guardians as it impacts tax credits and deductions, influencing financial planning and obligations.

Federal Dependent Eligibility

Determining dependent eligibility on federal tax returns involves specific IRS rules. These rules include tests for relationship, age, residency, and financial support. The relationship test requires the child to be a son, daughter, stepchild, foster child, sibling, or a descendant of any of these. For the age test, the child must be under 19 at the end of the year, under 24 if a full-time student, or any age if permanently and totally disabled. Residency requires the child to have lived with the claimant for more than half the year. Lastly, the financial support test requires the claimant to have provided more than half of the child’s financial support during the year. These requirements are designed to ensure only one party can claim the same child, reducing disputes.

Custody Arrangements

Custody arrangements significantly affect who can claim a child as a dependent. Typically, the custodial parent—the parent with whom the child resides most of the year—has the right to claim the child. However, this right can transfer to the non-custodial parent if the custodial parent signs Form 8332, releasing their claim. In cases where custody is split equally, the IRS applies tie-breaker rules, such as granting the claim to the parent with the higher adjusted gross income (AGI). Clear communication and agreements between parents are vital to avoid IRS conflicts.

Tie-Breaker Criteria

When both parents qualify to claim a child, the IRS uses tie-breaker rules. Priority is given to the parent with whom the child lived the longest during the tax year. If this does not resolve the issue, the claim goes to the parent with the higher AGI. In some cases, parents may agree to alternate years or allow one parent to claim the child in exchange for other financial considerations. Such agreements should be documented to avoid future disputes.

Unauthorized Dependent-Claim Consequences

Improperly claiming a dependent can lead to serious consequences. The IRS uses automated systems to detect duplicate claims, which can cause delays, audits, or denied refunds. Incorrect claims may result in penalties under the Internal Revenue Code Section 6662, including a 20% accuracy-related penalty on any underpayment of taxes. If fraudulent intent is determined, penalties can escalate to a civil fraud penalty of 75% of the underpayment.

Correcting an Improper Claim

If a child has been improperly claimed, immediate action is necessary. Gather evidence such as custody agreements, school records, or medical bills to support your claim. File your tax return as usual, claiming the child as your dependent. This will trigger an IRS investigation to resolve duplicate claims. Both parties may be required to submit documentation to verify their eligibility. If you realize after filing that someone has improperly claimed your child, submit an amended return using Form 1040-X. For fraudulent claims, consider filing Form 3949-A to report suspected tax fraud. Although resolving such disputes can take months, maintaining thorough records and cooperating with the IRS is crucial for a favorable outcome.