Are you a CPA or Tax Person who can answer this question?

June 23, 2020 11:58 AM

Posting this question for a friend: Each year, I claim my daughter as a dependent on my tax return. My ex-partner does not work and does not file taxes. However, she claimed the pandemic child benefit ($500) before I submitted my taxes this year.

When I tried to e-file this year, the IRS would not accept my return because my daughter’s SS# had been flagged with the Social Security Administration. I am mailing in my return, but is it my responsibility to get my ex-partner to return the $500 or get a CPA involved so that my taxes are valid? Or will the IRS likely accept my tax return and deal with my ex-partner separately? Thanks for any insight.

posted by swheatie to Work & Money (3 answers total)

This comes up a lot in foster care, since the standard credit goes to wherever a child lived the majority of the year. Our local agency advises foster families who are concerned about this sort of conflict to file without the credit first (e-file or mail) so that the bulk of their refund goes through, and then filing a paper amendment for the child credit. The IRS flags the conflict and will send out letters asking for clarity so that they can correct the credits as appropriate.

In our case that would mean mailing court records showing the length of placement, which is pretty cut and dried. In your case maybe that would be school records or explaining that your ex doesn't work and doesn't provide for your child. You don't need a CPA and you definitely don't need to interact with your ex about this. Once the letter shows up, depending on the evidence you have and what specifics the IRS asks for, you'll know what you're in for and if you feel comfortable handling things on your own.
posted by Nonsteroidal Anti-Inflammatory Drug at 1:06 PM on June 23, 2020 [4 favorites]

This happens all the time. The IRS will audit one of the returns and ask for proof that the qualifying child is your dependent (this is one form, so you have an idea of what they will be looking for). If thy can’t defend it, the other person’s return is processed. If that person IS successful in defending their claim the IRS will then go to the other person and audit them. All of this is usually done through the mail. If you are hurting for money and don’t want the other money you are expecting to recieve go be tied up you can file a return without the qualifying child and then file an amended return claiming the child once the first one has been processed.
posted by saucysault at 1:30 PM on June 23, 2020 [1 favorite]

The pandemic payment didnt get listed on her taxes. There wasnt a place to do that. She received the pandemic portion as a mother and she doesnt have to have custody of her to get it. The flagging was because she and you once shared households and the child. You have the custody and proof so it will be sorted out. She didnt do anything wrong. You both are entitled to get that.
posted by The_imp_inimpossible at 9:02 AM on June 24, 2020