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Level 6
March 6, 2021
Question

My client is not claiming an 18 year old still in high school so that child can get the recovery rebate!

  • March 6, 2021
  • 20 replies
  • 26 views

Well this isn't really a question but I need to tell someone that understands!  My client's 18 yr old made less than $4000, is still in high school now, and they told me to file her taxes and claim the recovery rebate.  After spending a long time on the phone with them explaining to them they can't do that and why, they still are going to.  I told them I would not file the child's return.  They are going to do it in turbo tax.  They called me back and said they answered all the questions correctly and she is getting the $1800 and to take her off their return as a dependent.  I told them I would take her off.  Could this be fraud on their part?  I have followed everything up with emails with explanations so I have documented my part in this.  Of course they called an EA friend of theirs who conferred with their CPA boss and was told they could do it.  And of course all of this girl's friends are doing it.  yada, yada, yada....Sheesh!  So....wait....I do have a question.  Will the IRS give her the money or not?  And if they do will they audit and ask for it back?  I am not enjoying tax season this year as I usually do.  😕😕

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20 replies

Just-Lisa-Now-
Intuit Community Champion
March 6, 2021

I had a client call and asking about them claiming their dad on the return, they support him and claim him every year, but he wants the stimulus.

I explained to them how it worked, and said

"If you want to tell me you dont support him anymore, I have no problem taking him off your return, but I wont file a return for him to get the stimulus and I wont put him back on your return in 2021 when he suddenly becomes a dependent again."

They havent been in yet, so I dont know what theyve decided.

 

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
PATAX
Level 12
March 6, 2021

God bless you Lisa... In my opinion you did the right thing🌳... if they do not want to do the right thing then they may leave, hence the tree, "like a tree: leave"🌳

sjrcpa
Level 15
March 6, 2021

"Could this be fraud on their part?" Yes

" Will the IRS give her the money or not? "  Probably yes, which does not mean it is right

"if they do will they audit and ask for it back? " Maybe

We can only do what is right, and explain to our clients the tax rules.

Greed is rampant lately with people sticking out their hand for free gov't money.

If your "clients" do this despite being told it is wrong, do you really want this type of client?

The more I know the more I don’t know.
PATAX
Level 12
March 6, 2021

God bless you sjr... I am sick and tired of this rampant greed also. When will this nonsense end🌳

Level 5
March 6, 2021

TurboTax would not have allowed the stimulus had the child checked the box saying that the child could be claimed by someone else. By not doing that the child filed a fraudulent return. 

sjrcpa
Level 15
March 6, 2021

Our professional software won't do it either. But you have to indicate the person could be claimed as a dependent.

The more I know the more I don’t know.
qbteachmt
Level 15
March 6, 2021

"and said they answered all the questions correctly"

Not living on $4k, they didn't. They likely overlooked "could be claimed by someone else."

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

Your client likely thinks filing for herself = no longer dependent. Let's not let the real world get in the way of wishful thinking.

If you still want to help them, send them to the Interactive wizards portal for determining dependency:

https://www.irs.gov/help/ita

And:

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.

Don't yell at us; we're volunteers
PATAX
Level 12
March 6, 2021

You hit the nail on the head QB🌳

qbteachmt
Level 15
March 6, 2021

"You hit the nail on the head QB"

Beats hitting your head on a nail...  🙂

Don't yell at us; we're volunteers
BobKamman
Level 15
March 6, 2021

@utah-arizona-taxlady 

Don't you mean, your former client?

PATAX
Level 12
March 6, 2021

I wonder how many of these people, who are trying to game the system , sit in the front Pew of their Church and point their fingers at others? These are the Hypocrites that Jesus and the prophets spoke out against. They have no fear of God.

BobKamman
Level 15
March 6, 2021

@PATAX 

The page with Matthew 22:21 is missing