Someone Claimed My Dependent Without My Permission. What Can I Do?

Discovering that someone has claimed your dependent on their tax return without permission can be both frustrating and confusing. This situation impacts your potential tax refund and raises concerns about the security of your personal information. Addressing this issue quickly is essential to ensure you receive entitled benefits or credits. Understanding the necessary steps will help you navigate the process effectively and restore order to your financial affairs.

IRS Qualifying Dependent Criteria

Understanding the IRS criteria for qualifying dependents is key when addressing disputes over dependent claims. The IRS outlines specific guidelines in the Internal Revenue Code to determine who can be claimed as a dependent, ensuring compliance and preventing fraudulent claims.

To qualify, a dependent must meet tests for relationship, age, residency, support, and joint return. The relationship test requires the dependent to be a child, sibling, other close relative, or a member of the taxpayer’s household for the entire year. The age test generally applies to children under 19, or under 24 if they are full-time students, with exceptions for permanently disabled individuals. Residency requires the dependent to live with the taxpayer for more than half the year, with exceptions for temporary absences.

The support test mandates that the taxpayer provides more than half of the dependent’s total support for the year, including food, housing, clothing, education, and medical care. The joint return test stipulates that the dependent cannot file a joint return with a spouse unless claiming a refund. These criteria are crucial in determining eligibility and ensuring compliance with IRS regulations.

Signs Someone Else Claimed Your Dependent

Detecting that someone else has claimed your dependent can be challenging, but certain signs can alert you. One common indicator is the rejection of your electronic tax return by the IRS, citing that a dependent listed on your return has already been claimed. This feedback signals the need for further investigation.

A delayed paper return processing time may also indicate a conflict with another filing. This delay is often accompanied by a CP87A Notice from the IRS, which informs you that your dependent was claimed on another return. Receiving such a notice requires prompt action to address the issue.

Discrepancies in your expected tax refund amount are another warning sign. If you expected a larger refund due to credits like the Child Tax Credit or Earned Income Tax Credit and received less than anticipated, it may be because someone else claimed your dependent. These credits rely on dependent claims, and unauthorized claims can directly impact your refund.

Filing a Dispute With the IRS

When someone else claims your dependent, a formal dispute with the IRS is necessary. Begin by gathering relevant documentation to support your claim, such as birth certificates, school records, and medical bills. This evidence is critical to proving your case.

If applicable, file IRS Form 8862, “Information to Claim Certain Refundable Credits After Disallowance,” and submit a paper return with a detailed letter explaining the situation, along with copies of supporting documentation. The IRS will review your submission, and while the process may take weeks or months, it is a necessary step in resolving the dispute.

Maintain communication with the IRS throughout this process. Respond promptly to correspondence or requests for additional information to avoid delays. Consulting a tax professional can provide guidance tailored to your situation, ensuring you navigate the dispute process effectively. Their knowledge of IRS procedures and potential outcomes can be invaluable in achieving resolution.

Correcting Your Return

Once the IRS has resolved the dispute and confirmed your rightful claim to the dependent, amend your tax return to reflect the correction. File Form 1040-X, “Amended U.S. Individual Income Tax Return,” to adjust your original return, incorporating the dependent and any associated credits or deductions initially disallowed. Include all relevant schedules and forms affected by the change, such as Schedule EIC for the Earned Income Tax Credit or Form 2441 for the Child and Dependent Care Credit.

Amending your return is an opportunity to optimize your tax position. Accurately claiming the dependent may unlock additional tax benefits that enhance your refund or reduce your tax liability. Review possible implications for state tax returns, as state regulations may differ and require separate amendments. Consulting your state tax authority’s instructions will ensure alignment between your federal and state filings.