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    #1

    General Tax Question

    I have a client who normally file the return using the filing status of "married filing joint." The situation for her household this she lives with her husband and daughter in the same household. The daughter already did her return using her mother as a dependent. My question is, can the husband use married filing joint but not claimed the spouse's exemption. Or do they have to marry filing joint and claimed both exemptions? I would appreciate anybody's help in this matter.

    Larry
    Tags: None
    #2
    Based on your post, the husband and wife apparently have enough income to normally file an income tax return, so it is highly unlikely the daughter can claim her mother as a dependent.
    Does the daughter own the home or pay the rent and expenses? What is the income for the husband and wife? Does the daughter pay more than 1/2 of their support? The daughter probably cannot meet the requirements to claim either parent, but we don't have enough information to give you a definitive answer. He certainly cannot file MFJ and leave the wife off the return.

    Comment

      #3
      Why did the daughter claim the mother as a dependent?
      Jiggers, EA

      Comment

        #4
        probably to get more refund -- she did not do it with me

        Comment

          #5
          Originally posted by ldreyna View Post
          I have a client who normally file the return using the filing status of "married filing joint." The situation for her household this she lives with her husband and daughter in the same household. The daughter already did her return using her mother as a dependent. My question is, can the husband use married filing joint but not claimed the spouse's exemption. Or do they have to marry filing joint and claimed both exemptions? I would appreciate anybody's help in this matter.

          Larry
          What is the mother's income?

          What is the father's income?

          Do any of them receive Soc Sec?

          Who owns the house and pays for its upkeep?

          Did the daughter self file or use a return preparer? Can you get a copy of her return and see what is going on?

          Proceed with caution with your client because she was already claimed so if you correct the filing it will have to be a paper filing with explanation. I have a feeling you may be doing a 1040X on the daughter's return also.
          Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

          Comment

            #6
            I would do all of the above and then make sure the daughter's return is amended if that is appropriate. Did daughter do this with the consent of the mother? Why didn't she claim the father too? How old is she? So many questions need to be answered. To not claim the spouse he would have to file MFS.
            Believe nothing you have not personally researched and verified.

            Comment

              #7
              I am really confused by who did what? I agree whatever returns have been filed need to be looked at. I believe a can of worms is about to be opened esp is Social Security and mfs get together.

              Comment

                #8
                My assessment

                Daughter has a real tax problem, whether created willingly or inadvertently.

                "Run Forrest. . .Run!!" is quite appropriate here.

                FE

                Comment

                  #9
                  Daughter is not your problem

                  If someone else prepared the daughter's return, then that is not your problem. I would file husband and wife as joint return, and advise them the IRS will probably come after the daughter.

                  Amazingly, it is quite possible the daughter claimed her mother with the consent of her parents. There is a mindset on the street among many people that taxpayers can pick and choose who they can claim, and can do so to maximize their return. Preparers see this every day with the EIC crowd.

                  If parents are entitled to claim each other, I would prepare their return accordingly and withdraw if there is resistance from any party.

                  Comment

                    #10
                    I routinely run into situations where a dependent child on the parents return have gone ahead without the parent's knowledge and filed online claiming own exemption and also adult children claiming a parent on a self prepared return, where I did the parents return MFJ or other filing status. It all boils down to poor communication.

                    My policy with minor exeptions has been:

                    1) If the kid screws up and self prepared the return claiming exemption I will do a 1040X free! You get this pass only once because if it happens again it is poor communication.
                    If the kid's return was prepared by another preparer I ask them to go back to them and do a 1040X

                    2) If an adult child claimed a parent when they did not qualify and the adult child is not my client. Either they pay me to do a 1040X or go to their own preparer. I question what due diligence that preparer did before putting a dependent on the return. If I have to put a parent as a dependent, I have a full checklist that I go through. I have refused to put a dependent on a return when the answers were unsatisfactory or questionable. The problem mainly stems from the parent getting some pension or retirement income or investment income.
                    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

                    Comment

                      #11
                      Parent's claimed their minor child and return was rejected. Child claimed elsewhere.

                      I had the parent's check with the older brother who didn't live at home. The older brother claimed the younger brother, HOH and larger refund. Self-prepared.

                      The parent's didn't want to "hurt" the older son by making him amend. Didn't want him to "get in trouble". The kid has already been in trouble with the law and will continue to be in trouble as he gets older. So has the younger child.

                      When will parents learn and make their children face the consequences of their actions? Just my rant.

                      Parent's just didn't claim the child that year.
                      Jiggers, EA

                      Comment

                        #12
                        Originally posted by Jiggers View Post
                        Parent's claimed their minor child and return was rejected. Child claimed elsewhere.

                        I had the parent's check with the older brother who didn't live at home. The older brother claimed the younger brother, HOH and larger refund. Self-prepared.

                        The parent's didn't want to "hurt" the older son by making him amend. Didn't want him to "get in trouble". The kid has already been in trouble with the law and will continue to be in trouble as he gets older. So has the younger child.

                        When will parents learn and make their children face the consequences of their actions? Just my rant.

                        Parent's just didn't claim the child that year.
                        If the self prepared return claimed EIC there is a good chance it may be audited. I had a situation with a relative of my client using same "tricks". They contacted me when they got the audit notice.
                        Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

                        Comment

                          #13
                          the clients are enabling the son and he did a false return. Report him.
                          Believe nothing you have not personally researched and verified.

                          Comment

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