Earned Income Credit

I'm from Minnesota. My daughters father (we were never married) claimed her on his 1999 income taxes and took her as his dependant. He also took the earned income credit for her. He lives in another state. He does not have custody. She lived with me since she was born. I also claimed her on my 1999 income taxes and took the earned income credit as well as the excemption for her. The IRS sent me a letter asking me to send proof that I was able to file Head of Household (I am unmarried.) The IRS re-figured my taxes, and have me filing as single on them for 1999, and say I owe them nearly $5000. The father only sent a little over $1000 in child support that year (I have documentation of this.) I paid for all other expenses for my child, rent, utilities, food, clothing, school expenses, etc. I have gathered all the proof the IRS wants and will be sending it to them this week. I'm afraid to file this year, because I think the IRS will keep my refund. What's going to happen? Should I worry they will keep my return for the year 2000?

Since you were never married, the rules for divorced parents do not apply to you. So, unless there is some sort of multiple support agreement you signed, you are entitled to the dependency exemption for your child who lived with you as long as you provided over half the support, which you did.

You are also entitled to file as head of household since you are not married and you paid more than half the cost of keeping up the house for your child.

So it sounds like if you prove the actual situation to the IRS, you should be OK. Your ex probably told them he supplied over half the suport and that caused this problem.