Credit can be bigger on NYS IT-213 when all dependents are not included.

[NYAccountant]

Credit can be bigger on NYS IT-213 when all dependents are not included.
Example, married couple with 5 children, child #5 is less than 4 years old, AGI 15,000, if you include child #5 in the return, the credit would be $475, if you don’t include child #5 in the return the credit would be $594. My question is 1) is it legal to omit dependents for a bigger refund? 2) If you already filed the return with all dependents can you file an amended return to take off one dependent?

[Peachie]

Are you for real?

Credit can be bigger on NYS IT-213 when all dependents are not included.
Example, married couple with 5 children, child #5 is less than 4 years old, AGI 15,000, if you include child #5 in the return, the credit would be $475, if you don’t include child #5 in the return the credit would be $594. My question is 1) is it legal to omit dependents for a bigger refund? 2) If you already filed the return with all dependents can you file an amended return to take off one dependent?

Why would you commit fraud? I understand the premise of your point, but it's not a complete and acurate return. I get it, you are an accountant, not a tax professional. I am not trying to be funny but to ask this question on a respected public board just stumps me.

Peachie

[NYAccountant]

That's my question! Is it legal? Is there any law requiring you to include all dependents on your tax return? Would you consider it fraud for someone to omit some deductions, like interest expenses, from his return? (There is a possibility to get a bigger refund with fewer deductions). You get my point?

[DonPriebe]

That's my question! Is it legal? Is there any law requiring you to include all dependents on your tax return? Would you consider it fraud for someone to omit some deductions, like interest expenses, from his return? (There is a possibility to get a bigger refund with fewer deductions). You get my point?

Except for the "don't claim all my expenses so I get more EIC" scenario, I don't know of any regulation that would require you to claim all your deductions or credits. Examples --

Unmarried couple with a child - one partner voluntarily does not claim child as dependent so that other partner may.

Taxpayer with itemized deductions slightly in excess of standard deduction voluntarily takes the standard to avoid the hassle (or cost) of preparing Schedule A.

Taxpayer paying $310 of foreign tax only claims $300 to avoid form 1116.

Taxpayer below filing requirement does not file to get refund of withholding.

Taxpayer does not claim church deductions - that's between him and God.

Taxpayer only claims three children because additional children don't have any tax benefit.

[New York Enrolled Agent]

Credit can be bigger on NYS IT-213 when all dependents are not included.
Example, married couple with 5 children, child #5 is less than 4 years old, AGI 15,000, if you include child #5 in the return, the credit would be $475, if you don’t include child #5 in the return the credit would be $594. My question is 1) is it legal to omit dependents for a bigger refund? 2) If you already filed the return with all dependents can you file an amended return to take off one dependent?

Question: On line 4 of the IT-213, doesn't it ask how many children qualify for the federal child tax credit? If you had five children on the federal return (presumably they all qualify for the child credit), then it seems to me you must use that same number. Note in the instructions it says all those who "qualify" whether or not they got a child tax credit.

Are you proposing only using four children on the 1040 and then the same four on the NYS return?

[NYAccountant]

I’m proposing to report on both, the federal and state, 4 children. Since this guy has earned only $15,000, the fifth child will not make a difference in the federal refund.

[BOB W]

NY Accountant> Do yourself a BIG favor,,,, do it the right way (5 children) and let the chips fall where they may for your client. If anything goes wrong the client will blame YOU. Copies of tax returns can go to many places, like welfare, health insurance or whoever.

[NYAccountant]

NY Accountant> Do yourself a BIG favor,,,, do it the right way (5 children) and let the chips fall where they may for your client. If anything goes wrong the client will blame YOU.

Don't you have a moral and legal obligation to get for your client the biggest refund?

[BOB W]

Don't you have a moral and legal obligation to get for your client the biggest refund?

Not in this case. You could be hurting your client. Omissions are NEVER good. All legal deduction should be taken, without exception.

[NYAccountant]

Thanks for the responses.

[BOB W]

Thanks for the responses.

Are you ready to tell us what direction you are taking?????

[NYAccountant]

I would go with the majority opinion. So far we got three (Peachie, DonPriebe, BOB W) against it and zero for it.