Filed as dependent when independent

[IndependentFiler]

In 2006, I turned 19 years old and worked full-time (did not attend school) the entire year while paying half of the rent to my mom every month ($400). I made about $20,000 that year and she made about $1,000 because she doesn't work except for about four hours a week, while her partner pays her bills.

At the end of the year, I moved out and into a rental with my girlfriend. When I went to file my tax return, I was excited to learn that I was getting $500 back on my federal return, which is a lot when I didn't make much and I was on my own. However, I discovered that my mom had claimed me without telling me. I was upset, but I didn't want to get her in trouble, so I did nothing. Adding insult to injury, upon receiving her tax return, she ran off secretly to the casino with her friend, coming back penniless.

My first thought was, why didn't the IRS see that there wasn't any possible way my mom could have supported me? I paid my own bills and sometimes even hers when she was in a pinch, while paying rent faithfully every month.

Now, as the new tax season approaches, I am 20 years old and have lived on my own for over a year. However, she hints of claiming me again and has no concern about cheating me out of the $500!! What can I do without causing a major criminal investigation by the IRS? I just want the return that's legally mine without her trying to beat me to the punch and taking my money. Please help!!

Thank you so much!

[BOB W]

Make sure you file your return first>>>>>>>>>>>>>>>>>>>>>>>>>>>>

As soon as you get your W-2> file> don't walk >>>run

Be sure to electronically file your return..................on opening day ..... which is around Jan 15

See if your employer can provide your W-2 as soon as the final paycheck is issued.................

[solomon]

BOB W is correct. Nevertheless, if she does e-file before you, then your only recourse is to file a paper return and include an explanation why she is not entitled to claim you and eventually you should get your own exemption.

[Black Bart]

In 2006, I turned 19 years old and worked full-time...paying half of the rent to my mom every month...

Well, I gotta give you credit -- at least you worked and pulled your weight which more than a lot of kids do nowadays.

...I moved out...went to file my tax return...getting $500 back...discovered...mom had claimed me...I was upset...didn't want to get her in trouble...did nothing.

Also, commendable restraint to not turn in your mom.

Adding insult to injury, upon receiving her tax return, she ran off secretly to the casino with her friend, coming back penniless.

It's a long shot since you're 20 years old, but to add a little balance to the equation, I'll just take a wild guess here anyway -- have you ever blown a wad of money foolishly?

My first thought was, why didn't the IRS see that there wasn't any possible way my mom could have supported me? I paid my own bills...

It would be physically impossible to analyze each of the millions of returns filed while speculating: "Hmmm; did typically late adolescent Jack typically pay bills with his money or did he spend a little bit on wine, women, and song? Does $1,000 income Jill typically have a rich uncle?" Like the guys said; they're going with whoever filed first or -- in the event of a dispute -- can prove he/she is entitled.

...I am 20...lived on my own for over a year..she hints of claiming me again...cheating me...What can I do without a...criminal investigation...want the return that's legally mine without her...taking my money...

Assuming the facts are as presented, there's not much doubt that you're right (your exemption belongs to you) and Mom's wrong (her manipulation is deplorable). File first, claim yourself, and tell her that you did. I wouldn't worry about investigation -- exemption squabbles are small potatoes to IRS unless she lists/listed you as a student for the earned income credit (she could be disqualified from that program for 2-10 years).

Still, your post displays a typical (and irksome) air of self-righteous entitlement that I see all the time when "good kids" like you come to the office demanding what's legally theirs. They tell me "Mom and Dad want to claim me and it'll cost 'em if they don't, but I'll get a $500 refund. After all, right's right." I always wonder if it ever occured to them that, during the last 18 years, those "cheating" parents probably sacrificed endless amounts of work, worry, time, money ($500? Give me a break!), and effort to raise them.

I wonder if they would be willing to do the same? After all, right's right.

[bertrans]

Indy/Dependy

Bart, yours is one of the best analyses I've seen of this situation. Well done, sir!

[Bees Knees]

IndependentFiler,

If the IRS ever audits your mother and finds out she was purposely trying to claim you knowing full well you were not her dependent, she could be prosecuted under the felony status of code section 7201, with a maximum fine of $100,000 and/or up to 5 years in prison.

I think you owe it to your mother to save her from a life of crime.

Claim yourself, now, before its too late…

[joanmcq]

I disagree BB

All he needs to do is paper file and claim his own exemption, if she claims first and he can't efile. He will get his refund. Then they will both get a letter and if neither files an amended return, they will both have to prove their points. With a W-2 of $20,000 there is little doubt he will prevail, and she will have to return the $$.

What he didn't mention in the 'I did nothing' is whether he filed a return after she told him she claimed him. If he did, it is likely he would owe if he did not claim his own exemption, and the IRS could come looking for him. Since he didn't mention owing taxes, I have a feeling he did not file. And their is little doubt that mom committed EIC fraud; she wouldn't have had much or any of a refund on $1,000 of wages without it.

So BB, I think independent filer has a right to be pissed; his mom sounds like a deadbeat, a thief, and a tax cheat besides. From that background, I give him kudos for paying his own way as soon as he could get a job, and taking control of his life.

[Bees Knees]

What he didn't mention in the 'I did nothing' is whether he filed a return after she told him she claimed him. If he did, it is likely he would owe if he did not claim his own exemption, and the IRS could come looking for him. Since he didn't mention owing taxes, I have a feeling he did not file. And their is little doubt that mom committed EIC fraud; she wouldn't have had much or any of a refund on $1,000 of wages without it.

So both mom and independent could face some serious jail time...mom for tax evasion and independent for conspiracy to cover up the tax evasion of mom.

Might want to start looking at real estate in Canada…

[Black Bart]

Response to "I disagree BB"

Disagreement's allowed alright, but I get to agree/disagree with some of your disagreements and conclusions.

All he needs to do is paper file and claim his own exemption...He will get his refund...With a W-2 of $20,000 there is little doubt he will prevail, and she will have to return the $$.

I agree.

What he didn't mention in the 'I did nothing' is whether he filed a return after she told him she claimed him. If he did, it is likely he would owe if he did not claim his own exemption, and the IRS could come looking for him...

I disagree (about IRS coming to look for him). I've never seen/heard of IRS sending a field agent out over a disputed exemption (their time's too valuable for such). If he filed/owed they'd bill him; if not they'd send a letter requesting a return. If no response then an SFR, although occasionally and infrequently -- but not rarely -- IRS loses these and nothing's ever heard from them again.

...their is little doubt mom committed EIC fraud...

True, but nothing much is going to come of that either except maybe a letter asking her to verify her EIC claim. She'll either claim ignorance or not respond and, either way, she'll just be billed and will probably never pay. Although I don't know of anybody they've barred from the EIC program, maybe they would, but as far as sending revenue agents to ferret out such piddlin' stuff, that's not likely to happen.

Let me throw in a rant here: An IRS tax seminar speaker recently told us they're hiring seven new revenue agents for our state -- now that oughta take a bite outta EIC crime. IRS itself estimates between 27-32% of the several million EIC returns filed should not have been paid, but...who's to stop it? Compliance hasn't substantially improved and all IRS can think of to do is to further tighten the screws on preparers. Signatures in blood (never mind 8867s) wouldn't help, since people rob stores for $100 -- all they have to do for $4,000 EIC is tell a lie.

So BB, I think independent filer has a right to be pissed; his mom sounds like a deadbeat, a thief, and a tax cheat besides. From that background, I give him kudos for paying his own way as soon as he could get a job, and taking control of his life.

Yeah, she's all that and he's right to be mad about it since he's doing fine with his life (anybody who's not on dope or an ex-convict qualifies as a gentleman and a scholar nowadays). Although he's a good kid/bad example for my complaint, I still don't like the tone -- it's like he sees declining to turn her into IRS as a noble sacrifice rather than the decent thing to "not" do. Even many kids having "good" parents feel they're entitled to everything the parents have (it's a gift!) and if they want a token $500 exemption payback, why, those old tightwads are "obsessed with money." Meanwhile, back at the kid's 1040, the attitude is "let's keep this strictly business".

[joanmcq]

Hey BB, when I said 'come after him' I meant with a letter and a bill. Jeez, we know the revenooers don't show up at your door for a few hunnert.

Letter, bill, levy.

[Black Bart]

Okay, I misunderstood and you're forgiven

Hey BB, when I said 'come after him' I meant with a letter and a bill. Jeez, we know the revenooers don't show up at your door for a few hunnert.

Letter, bill, levy.

but thanks anyway; it gave me a chance to write a big long letter on the board -- I just love to do that.