Dependent Child Claimed Herself

[Burke]

Need to amend child's return so parent can claim. However, child's income did not even exceed the standard deduction, so exemption was completely wasted. Got refund, will be no change except for "unchecking" the box. I am assuming we still have to go through this process or parent's return will reject?

[erchess]

That's right

The parents' return will reject with her as dependent until amend of child's return gets in the system. Maybe someone can tell you when that will be but I feel pretty sure that the fast way for the parents to get their refund if one is due is to file asap on paper. Of course if the parents owe then there's no reason they likely care about to file electronically. In any event the matching for paper returns does not occur until after filing season. (That by the way is why the government likes electronic filing. Mistakes are caught more rapidly and more of them are caught and the process is cheaper. From their point of view there's no downside.)

If the parents are determined to efile for a fast refund you could see if they get one without her that is big enough they want to pay you for a later amend to claim her or pass on claiming her. Note that even if they pass on claiming her, she needs to amend her return because while her parents can elect not to claim her their doing so does not allow her to claim herself.

[Jesse]

I don't think the amendment will clear the child's Social Security No. to allow the efile. I would amend the child's return and paper file the parents and attach Form 8948 and check box 6 c. w/ explanation that the child claimed own exemption in error so efile will reject.

[taxea]

I hate when this happens! I tell my clients all the time when the kid starts working...Don't let them file their own return!!!

The child probably just filed to get the refund. If it is not a required filing the do a 1040 and write across the top "CORRECTED RETURN". Get it in asap. Unfortunately the parents will have to wait to file their return for 6-12 weeks after the child's corrected return has been filed.
And, either way, they will have to manually file but at least they can put the child on as a dependent.

[ChEAr$]

Parents should also consider using a "board of education" in order to "educate" children on responsibilities.

some readers here will know what I mean.

[ToledoEd]

I remember our Vice Principal used to come to the wood shop class and have them make a new board of education every other year.

[luke]

ChEAr$ and ToledoEd

I cant BELIEVE you guys - poor little Johnnie would be so traumatized just by the thought of such "cruel" & "sadistic" treatment - I'm sure he would end up needing lots of therapy (and be driving a brand new car with his lawsuit proceeds)?!

[Gary2]

Parents should also consider using a "board of education" in order to "educate" children on responsibilities.

some readers here will know what I mean.

What do you do with the parents when you discover that the $15K in student loans for which the child is responsible means, notwithstanding the $5K AGI, that the student was supporting himself and the parents will have to give back the refundable AOC to which no one is entitled?

[ChEAr$]

What do you do with the parents when you discover that the $15K in student loans for which the child is responsible means, notwithstanding the $5K AGI, that the student was supporting himself and the parents will have to give back the refundable AOC to which no one is entitled?

Now just how could a student get 15k$ in loans without parents' guarantee?

[taxea]

I have always thought that schools should have a real life skills class that would include how to balance a checkbook, why you check with your parents before filing your own tax return and especially the correct information to put on a W-4. Nobody appears to explain a W-4 to any employee and I have clients who have worked for years and truly don't understand the consenquences of what they are doing when filing one out.

[Gary2]

Now just how could a student get 15k$ in loans without parents' guarantee?

My understanding is that merely guaranteeing the loan means it's still support provided by the student.

There's a difference between guaranteeing the loan and cosigning. In the former case, the lender must go after the student before trying to collect from the parent, and if the debt is canceled (which generally doesn't happen for federal student loans), it's the student who gets the COD income. For the latter, the lender can go after any person who cosigned the loan.