1040x if should have been dependent?

[kathyc2]

Clients grandson who she could claim and file as HOH, filed a 1040 to get the minute withholding refunded. Of course, he didn't check the box that someone could claim him as a dependent.

I'm not finding a place on the 1040x to change this. I'm thinking of just putting it in explanation of changes and then sending a copy of 1040 with the box checked. I've not had one of these since exemptions are no more, and wanted to check if this is way to handle?

He has received the 1,200, so planning on also putting that in explanation and sending check with 1040x?

[Rapid Robert]

You're right; since the personal exemption deduction was temporarily eliminated beginning in 2018, the 1040X does not appear to provide any direct way to deal with this situation. Are you filing the 1040X simply to allow the grandparent to efile successfully with the dependent claimed? Or is it just to facilitate return of the EIP check? If the latter, I wouldn't bother with 1040X at all, just return the payment. I would not return the payment with the 1040X in any case, but follow the published IRS guidelines.

I guess your solution (explanation of changes and attach 1040 corrected copy) is what I would do too, absent any other official guidance.

[TaxGuyBill]

Line 24 will change the number of exemptions. Then as you say, enter in the the description.


No, I would NOT send the $1200 with the 1040X. I would send it to the address in Q/A #41. I would also include an explanation with that (and/or a copy of the 1040X with a large note that it is for reference only).

https://www.irs.gov/coronavirus/economic-impact-payment-information-center

[Rapid Robert]

Line 24 will change the number of exemptions.

Except for this problem:

"For amended 2018 or later returns only, leave lines 24, 28, and 29 blank." (form 1040X instructions).

[TaxGuyBill]

Ah, I didn't know that. Thanks.

Personally, I think I think I would fill it out anyways. If they want to ignore it they can.

[kathyc2]

No, he needs to amend to release the "exemption" so she can claim him as other dependent and more importantly HOH. Hoping his would be processed before 7/15 so her's can be e-filed.

I'm personally not a fan of the Q41 method of returning the payment. Asking to just send in with a scrap of paper with SSN and explanation says to me that they aren't going to be tracking who returns money. So, that means the people who don't know to do it or are less than honest, will likely not even get a follow up letter than it was sent in error. Who knows if the answer is it needs to be returned is the final one, or if it will be changed again.

[TaxGuyBill]

Hoping his would be processed before 7/15 so her's can be e-filed.

Even if it is processed by that time (which is extremely doubtful), from what I've heard she still won't be able to e-file. The computers still register as his 'exemption' as being e-filed, and from what I've heard that doesn't change even if everything has been processed. So I would just mail it and forget about e-file.

[Burke]

Even if it is processed by that time (which is extremely doubtful), from what I've heard she still won't be able to e-file. The computers still register as his 'exemption' as being e-filed, and from what I've heard that doesn't change even if everything has been processed. So I would just mail it and forget about e-file.

Do you have a cite for that? Unless something has changed in that regard, I was always able to e-file a parent's return AFTER the dependent's return had been corrected by 1040X. But you are right, it probably won't process before 7/15/20. I doubt if any 1040X's will be, so there isn't any way to have any practical experience with this. Kathy, does she owe if she claims dependent and files HOH?

[TaxGuyBill]

Do you have a cite for that? Unless something has changed in that regard, I was always able to e-file a parent's return AFTER the dependent's return had been corrected by 1040X.

No, I don't have a cite; that is only what I've "heard". But if you've successfully done it before, apparently what I "heard" was wrong. Thanks.

[RWG1950]

I think that Tax Guy Bill has this right. Within the last year, a customer's dependent child filed on her own, to claim a small refund.
She did not claim her own exemption and had even checked the box to say She was someone's exemption but IRS would not accept the parents subsequent e-filed return.
Parent's ended up having to file a paper return to claim the child's AOC. This seems to be a recent quirk on the part of IRS.

[Gene V]

I have the same situation, student claim himself, should have been claim on parents return.
I'm going to file amended for the student, which probably wouldn't get process until after
July 15.

Then on July 15, I going to send extension with payment for parents return, then Efile the return before Oct. 15, and see
if it goes through

[Gene V]

I would just go ahead and paper file the parents' tax return, claiming the student, and move on.

You're probably right, I may just do that. (of course, I could e-file and if I get rejection, then mail return)