Claiming Married Daughter As A Dependent

[djack1040]

Situation:

Eighteen year old daughter, no income who lived at parent's house all of 2005, married in December 2005. Her new husband filed his 2005 tax return as MFS.

When I try to claim the daughter on her parent's return, the IRS is rejecting the return with a Reject Code 509-Dependent's SSN was used as a Secondary (Spouse) SSN on a previous return. Obviously, when he filed MFS he was required to show his spouse's SSN on his return even though no tax effect.

Am I missing something? I was certain the daughter could be claimed by her parents if she met the seven dependency tests.

[JoshinNC]

the husband must have claimed her exemption

even though they filed seperately, his preparer my have given him her exemption, thus disallowing the parents.

[Unregistered]

Married

These two people were married WHY would he file MFS.
MFJ was the only way to go.
When you file a MFS you are required to give the spouses name and ss#.

[Bird Legs]

Trouble

If you want to create a little excitement you might want to have the client file a paper
copy claiming daughter as a dependent. This will create a lot of paper work from the
IRS and also create a great debate.

[Jesse]

If son in law e-filed he must have done MFJ because MFS cannot be e-filed have to use snail mail.

[Jesse]

Am I overlooking something?

These two people were married WHY would he file MFS.
MFJ was the only way to go.
When you file a MFS you are required to give the spouses name and ss#.

I plan on doing the same thing w/ a client, daughter, qualifying dependent of Dad's until she married in December. By filing MFS the couple will loose approx $250 but by Dad taking the dependency deduction he will receive $800(25% tax bracket).

As long as the daughter does not file MFJ I believe I can do this correct?

[Unregistered]

MFS can be efiled,

just did it on Saturday!

[Koss]

MFS filed electronically

If son in law e-filed he must have done MFJ because MFS cannot be e-filed have to use snail mail.

We file dozens of MFS returns electronically in my office every year.


Burton

[Koss]

Because he can

These two people were married WHY would he file MFS.
MFJ was the only way to go.
When you file a MFS you are required to give the spouses name and ss#.

Maybe MFS was better for state tax. Happens quite a bit here in Ohio.

Maybe the guy wanted to let his father-in-law claim the exemption for his wife, since he supported her most of the year before they got married.

The return could be amended to make it a joint return. Might work out better for everyone.

But the guy has the right to file separately if that's what he wants.

He doesn't have the right to file a joint return if his wife won't sign it.

Burton

[Koss]

Father can claim her

Am I missing something? I was certain the daughter could be claimed by her parents if she met the seven dependency tests.

The IRS will reject the father's electronically filed return simply because the daughter's SSN was used on the husband's return to identify her as the spouse.

He can nevertheless claim her as a dependent because she is not filing a joint return. He will have to file by mail. This has been a known system issue for years. Like the cases where you have to tell the client that "someone else claimed your kid," the electronic reject doesn't mean he can't claim her. It simply means he can't file electronically.

Burton

[Koss]

Exemption for spouse

even though they filed seperately, his preparer my have given him her exemption, thus disallowing the parents.

It is possible, in some cases, for a person who is using the MFS status to claim an exemption for the spouse. But the mere fact that the IRS is rejecting the return doesn't mean that her husband did in fact claim the exemption. See my post below.

Burton

[jainen]

MFS returns

>>We file dozens of MFS returns electronically<<

MFS returns are not eligible for e-file from community property states. I think it might be allowed starting this year if you include an allocation worksheet.

[Bird Legs]

MFS-E-filed

Have tried to file several electronically, where the filing status is MFS, and all
have been rejected.

[Jesse]

I stand corrected

Sorry. I am community property and my program has always issued an "error cannot efile MFS" maybe because I had the state "piggyback" the Federal. Not sure.

To do a MFS return doesn't the spouses name and social security number have to be listed? So if it then records that number as being used on another return, only the first spouse to efile will take and the other spouse has to mail the return?