What to Do If Someone Claimed You on Their Taxes Without Permission

Dealing with the aftermath of someone claiming you as a dependent on their taxes without your permission can be both frustrating and complex. This situation affects your ability to file your own tax return and may have legal implications for both parties involved. Addressing this issue promptly is essential to ensuring your financial records remain accurate and compliant with IRS regulations.

Confirming Dependent Status Requirements

Before taking action, it is important to understand the criteria that determine whether someone can claim you as a dependent. IRS guidelines under the Internal Revenue Code (IRC) Section 152 outline the requirements for qualifying dependents, divided into two categories: qualifying child and qualifying relative. Each has distinct criteria, including age, relationship, residency, and support tests.

For a qualifying child, the individual must be under 19 at the end of the tax year, or under 24 if a full-time student, and must have lived with the taxpayer for more than half the year. Additionally, the child must not have provided more than half of their own support during the year. A qualifying relative must have a specific relationship to the taxpayer, such as a parent or sibling, and a gross income below the exemption amount set by the IRS, which adjusts annually.

Reviewing these criteria can help you determine whether the claim was legitimate or erroneous. The IRS periodically updates these guidelines, so staying informed about any changes is essential for accurate compliance.

Filing a Paper Return With Additional Documents

If someone has claimed you on their tax return without authorization, file your own tax return. Electronic filing will likely be rejected due to the duplicate claim, so filing a paper return becomes necessary. This involves preparing your tax return manually and mailing it to the IRS with supporting documents that substantiate your claim as an independent filer.

Include a detailed explanation of the situation in a cover letter accompanying your paper return. Clearly state the circumstances, including relevant dates and parties involved. Attach proof of residency, such as utility bills or lease agreements, and evidence of financial independence, like pay stubs or bank statements.

Ensure all documents are complete and accurate before submission to avoid delays. Maintain copies of everything sent to the IRS for your records. The IRS typically takes longer to process paper returns, so patience and persistence are key.

Following IRS Dispute Protocols

Once you file your paper return, initiate a formal dispute by contacting the IRS directly through their toll-free number or a local office. Provide them with details of your situation and any correspondence numbers related to the issue to help locate your file and expedite the review process.

The IRS will review your case, comparing your submitted documents against the other party’s claim. Ensure all your documents are organized and accessible. They may request additional information, such as transcripts of your filed return or verification of income and expenses. Compliance with these requests is essential to resolve the issue efficiently.

Respond promptly to any IRS notices or requests for further information. Consider consulting with a tax professional for guidance, especially if the case becomes complex. A tax advisor can interpret IRS notices and ensure your responses are accurate and comprehensive.

Evidence Gathering to Support Your Claim

Gathering robust evidence is critical to substantiating your tax position. Collect financial records that highlight your independent financial activities, including W-2 forms, 1099s, and bank statements that demonstrate income sources and amounts. These documents serve as proof of your financial self-sufficiency.

Compile evidence of your living arrangements and personal expenditures. Lease agreements, mortgage statements, and utility bills can prove residency and independence. Receipts for personal expenses such as healthcare, education, and insurance premiums help illustrate that you cover your own costs.

Tax law places the burden of proof on the taxpayer in disputes. Maintain detailed, organized records and include a timeline of events, such as communication with the claimant or disputes raised in prior tax years, to provide context and strengthen your case.

Potential Fallout for the Claimant

The individual who wrongly claimed you as a dependent may face significant consequences. If the IRS identifies an erroneous or fraudulent claim, the claimant may need to repay any tax refund received or additional tax owed due to the claim, along with interest charges.

In cases of fraudulent intent, more severe penalties may apply. The IRS can impose fines under IRC Section 6663, which allows for a civil fraud penalty of up to 75% of the underpayment attributable to fraud. Criminal charges may also be pursued under IRC Section 7206 for filing false information, potentially resulting in substantial fines or imprisonment. These consequences highlight the importance of adhering to tax laws and ensuring all claims are legitimate.

Safeguarding Personal Information

Resolving unauthorized use of your information is only part of the solution; preventing future occurrences is equally important. Review your credit report for unusual activity that may indicate broader identity theft. Regular monitoring through credit bureaus can help detect unauthorized accounts or transactions early.

Implement security measures such as an IRS Identity Protection PIN (IP PIN) for additional protection in future tax filings. This six-digit number ensures that only you can file a return using your Social Security number. Strengthen your digital security with strong, unique passwords and two-factor authentication on accounts storing sensitive information. Taking these steps helps protect your personal and financial data from unauthorized claims and broader identity theft risks.