Level 5

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Double Dipping on EP 3 and child tax credit

Forum|Forum|4 years ago
February 12, 2022
5 replies
28 views

I heard a lot of married taxpayers are filing “Married filing separate “ to get additional child credit and EP 3 , is this legal?

ProSeries Professional

This topic has been closed for replies.

Best answer by PATAX

In my opinion it is unethical and improper. If any of my clients try to pull that crap, which I doubt, then they may become ex-clients.. I do what is right, and I do not need anyone's business, so if they do not want to conduct themselves like civilized honorable people, then they can go elsewhere...

R

rcooley25

Level 7

No its not legal and dont think the IRS is not going to catch this because they will.

G

garman22

Intuit Community Champion

Im not sure its not illegal. But thats why they issue separate letters to minimize that kind of nonsense.

PATAXAnswer

Level 12

In my opinion it is unethical and improper. If any of my clients try to pull that crap, which I doubt, then they may become ex-clients.. I do what is right, and I do not need anyone's business, so if they do not want to conduct themselves like civilized honorable people, then they can go elsewhere...

Just-Lisa-Now-

Intuit Community Champion

many preparers are considering this to be tax planning, file MFS to maximize the double dipping of the credits.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAX

Level 12

@Just-Lisa-Now- Lisa, I thought the IRS was directed, or was supposed to, issue rules to prevent double-dipping of EIP3 and the child tax credit...

Just-Lisa-Now-

Intuit Community Champion

lets say youre MFJ with 3 kids and you got the full EIP amounts (7000).
Filing MFS and one of them taking all 3 kids, their RRC would be 5600, but if you split that 7000 in half, thats only 3500, so that MFS person is still entitled to another 2100.

The other MFS half of the relationship, shows they got the 3500 (should have only been entitled to 1400 on the 2021 return), but there is no payback.

As a couple you just came out 2100 ahead.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAX

Level 12

@fredr @sjrcpa @Just-Lisa-Now- @rbynaker @garman22 @rcooley25 I think we can all agree to respect the diverse opinions of each other on this one. It will be up to the individual tax preparer to make his or her own decision

G

garman22

Intuit Community Champion

Oh, I cant agree more. On this one it is a person by person choice what we do. I do NOT like the idea of (what I believe) to be gaming the system. Its the taxpayers who end up paying for this nonsense.

But I wont bang on the next preparer who feels otherwise.

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