Grandparents & Dependents

[becktyler]

What is the name of your state (only U.S. law)? Texas

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Hello!

I have a question concerning some grandparents and their ability to claim their grandchildren.

Their daughter (who has never been married) and her three children (15, 11 & 10) have lived with them their entire lives. The daughter has never been employed or earned any income, ever. She does receive child support ($300 from one father, $200 from another), disability for her youngest child ($500) and food stamps ($500). She uses the majority of this money, however, for personal items (cigarettes, snacks, entertainment, etc.). The grandparents paid all housing, utility and transportation costs. They also bought a lot of food, clothing, school supplies, etc.

The daughter & grandchildren moved out at the end of November. She is now trying to find a way that she can claim her children so that she can collect tax credits. From what I understand she's intending on having the person she's currently staying with claim the children, saying they've lived there the entire year. Or she's going to try claiming that she earned income somehow.

My question is: Do the grandparents have a legal right to claim the grandchildren on their taxes? The daughter is stating that they cannot do so unless she signs a form giving them authorization.

(I hope this wasn't confusing.)

Appreciate your replies!

 

[Just Blue]

What is the name of your state (only U.S. law)? Texas

-----------------------------------------------------

Hello!

I have a question concerning some grandparents and their ability to claim their grandchildren.

Their daughter (who has never been married) and her three children (15, 11 & 10) have lived with them their entire lives. The daughter has never been employed or earned any income, ever. She does receive child support ($300 from one father, $200 from another), disability for her youngest child ($500) and food stamps ($500). She uses the majority of this money, however, for personal items (cigarettes, snacks, entertainment, etc.). The grandparents paid all housing, utility and transportation costs. They also bought a lot of food, clothing, school supplies, etc.

The daughter & grandchildren moved out at the end of November. She is now trying to find a way that she can claim her children so that she can collect tax credits. From what I understand she's intending on having the person she's currently staying with claim the children, saying they've lived there the entire year. Or she's going to try claiming that she earned income somehow.

My question is: Do the grandparents have a legal right to claim the grandchildren on their taxes? The daughter is stating that they cannot do so unless she signs a form giving them authorization.

(I hope this wasn't confusing.)

Appreciate your replies!

If the Grandparents would like to legally pursue this matter they should post for themselves.

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

-----------------------------------------------------

Hello!

I have a question concerning some grandparents and their ability to claim their grandchildren.

Their daughter (who has never been married) and her three children (15, 11 & 10) have lived with them their entire lives. The daughter has never been employed or earned any income, ever. She does receive child support ($300 from one father, $200 from another), disability for her youngest child ($500) and food stamps ($500). She uses the majority of this money, however, for personal items (cigarettes, snacks, entertainment, etc.). The grandparents paid all housing, utility and transportation costs. They also bought a lot of food, clothing, school supplies, etc.

The daughter & grandchildren moved out at the end of November. She is now trying to find a way that she can claim her children so that she can collect tax credits. From what I understand she's intending on having the person she's currently staying with claim the children, saying they've lived there the entire year. Or she's going to try claiming that she earned income somehow.

My question is: Do the grandparents have a legal right to claim the grandchildren on their taxes? The daughter is stating that they cannot do so unless she signs a form giving them authorization.

(I hope this wasn't confusing.)

Appreciate your replies!

If you have all of the facts correctly, then for 2015 the grandparents would be the ones legally entitled to claim the children. The person she is staying with cannot claim them without doing so fraudulently. Their fathers cannot claim them because the two parents combined did not provide more than 50% of the children's support.

The authorization form is for releasing the exemption to the other parent. Not for someone who could legitimately claim the children under the tax code.

 

[becktyler]

If the Grandparents would like to legally pursue this matter they should post for themselves.

That was helpful, thank you. I will pass on that message.

 

[becktyler]

If you have all of the facts correctly, then for 2015 the grandparents would be the ones legally entitled to claim the children. The person she is staying with cannot claim them without doing so fraudulently. Their fathers cannot claim them because the two parents combined did not provide more than 50% of the children's support.

The authorization form is for releasing the exemption to the other parent. Not for someone who could legitimately claim the children under the tax code.

These are the facts I was given. Assuming they are correct, the daughter cannot file and claim the children herself if she has not earned any income to support the children, and the person she is staying with would most likely be in a heap of trouble if they attempted to claim them?

I appreciate your help very much. Thank you!

 

[LdiJ]

These are the facts I was given. Assuming they are correct, the daughter cannot file and claim the children herself if she has not earned any income to support the children, and the person she is staying with would most likely be in a heap of trouble if they attempted to claim them?

I appreciate your help very much. Thank you!

Here is what would happen. Whoever files first would be able to file electronically. They other party would have to file a paper return to also claim the children. They would get their refund promptly. That would most likely be the grandparents. Then in November/December both parties would receive a "soft" letter from the IRS saving that there had be a duplicate claim and asking that whoever did it incorrectly amend their return and pay back the excess refund.

If no one amends, then the IRS will investigate more fully, and if the grandparents have been claiming the children for the last 15 years, then odds are they will only investigate the other party...particularly if mom was foolish enough to make up income.

 

[davew128]

Assuming they are correct, the daughter cannot file and claim the children herself if she has not earned any income to support the children

No...she can't claim them because she isn't providing the support. One can be entitled to claim the children if they provide the support from unearned income or even savings with no income. Earned income is only necessary to claim the EIC.