Question

My parents with my permission took my children their grandchildren off on their taxes but they do live with me I did this so I can pay the money back how do I file that

Forum|Forum|5 years ago
March 31, 2021
4 replies
0 views

I let my parents take my children off on their taxes in order to pay back money that I owed them but they live with me do I just not mentioned the children at all?

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macuser_22

Employee

You and you parents cannot agree to violate tax law and file a fraudulent tax return. The children must have physically lived with the grandparents more then half of 2020 to be qualified child dependents. They would have to lie on their tax return to claim the child(ren).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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shunkin1Author

Well thank you for your response but I did check in with H&R Block and other places as well to double-check that I was doing everything right they help financially support my children who are underage where we live in their home and they help over 50% of the financial needs that my children have they take care of so yes they are able to be reimbursed that in their taxes

macuser_22

Employee

@shunkin1 wrote:

Well thank you for your response but I did check in with H&R Block and other places as well to double-check that I was doing everything right they help financially support my children who are underage where we live in their home and they help over 50% of the financial needs that my children have they take care of so yes they are able to be reimbursed that in their taxes

Your question said "They live with me".

Now you are saying that they (and you) lived with your parents. That is a different question.

If they lived with your parent more than half the year then your parents CAN claim them if you do not.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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SweetieJean

Employee

Whoa...You cannot just decide who can or cannot claim your children. The tax law must be followed. Otherwise, this is fraud.

Only the person with whom the children lived for more than 50% of 2020 gets to claim them. I suggest you and your parents look into filing amended returns for any earlier years where the children were claimed improperly.

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shunkin1Author

Let's clear something up yes you can when it comes to financial needs and them supporting the financial needs of my children and keeping a roof over their heads as well as mine they are able to take them off on their taxes so we are not doing fraud here just to clear that up I have double-checked with H&R Block as well as they did when they did their taxes so we can get over the fraud thing that is not what is going on here everything that is owed to them is because they financially haven't helped clothes my children feed my children and let us live under their roof in their home when they have moved out into a different home

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pcofield

Yes, but there are other tests that must be met. The children must live with the provider for 6 monts or more.

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Mike9241

so you do not file a fraudulent return, you should claim your children on your return especially if you have not yet filed. and tell your parents they need to amend their tax return. if they do so before 5/17/2021 there will be no penalties or interest. if both you and your parents have filed you both have until 5/17/2021 to amend without penalties.. prior years are a different matter there may be penalties and interest but the taxpayer who underreported their tax liability may escape fraud penalties. if the IRS catches this, you will find the cost of legal representation can be extremely expensive.

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shunkin1Author

Just clearing something up we have cleared it up with their tax and their H&R Block system that they use it is not fraudulent first of all they financially support my children with the needs of clothing food Etc and allow us to live under the roof of their home while they live elsewhere so that we have a place to live so they are 100% entitled to the grandparent law of tax return they just can't get earned income that we have figured it out thank you very much

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shunkin1Author

Trying to clear this up we have cleared this up with H&R Block the people they do their taxes with and nothing is fraudulent there is no fraud going on there is a grandparents clause in there that they financially help support my children with clothes food Necessities as well as let us live under the roof of their home while they live elsewhere the only thing they're not eligible is for earned income just to clear something up in case anyone else had some questions on it if grandparents are financially supporting the grandchildren over 6 months in a consecutive year with over 50% of their needs they're entitled to take them off on their taxes they just cannot claim earned income