dependent on both parents return

[Sandra1]

Mom has 2 children. Parents are not and never have been married. Dad always puts both child dependents on his return. Mom's return has always had 1 of the children on her return listed as a dependent and has never been rejected. For 2021 Dad also puts both children on return and return clearly shows non-qualifying child on Dad's return. Now I submit same dependent on Mom's return and her return rejects (I think because the child Mom claims is on Dad's dependent listing). Is there a way to file Mom's return and it not reject without having to paper file? I was thinking if I said that someone else can claim the dependent (because he is on Dad's return) that maybe the return won't reject. Had another return that I forgot to take off the 2441 form so it rejected even though there was no $ amount stated and once I deleted the form the return accepted.... 

[qbteachmt]

Nothing here makes sense. Do you do both parent's returns? You cannot report the same child twice.

You used the word "non-qualifying" but is this for HOH, child care credit, RRC, etc?

Nothing here explains who qualifies for what or which parent tried to claim which provision. You didn't mention if they handled any advance payments correctly, either. Or, if one got money and the other is now trying to claim that as a refundable credit.

You state Mom has 2 children. How many does Dad have? You didn't mention if they all live together, who pays for the household? Marking that a child "can be claimed" is not the same as a child being claimed on two returns.

I recommend using the IRS wizards, one at a time for each adult and work through the provisions:

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

[Sandra1]

Mom and Dad had 2 children together but never married. Lived together until 3 years ago (children are 9 and 8). Since the split Mom has always put 1 of the 2 children on her income tax return.Dad puts the other child on his return. For 2021 Dad decides to do his own tax return thru Turbo Tax and puts both children on his return and files head of household (children live with Mom and Dad takes the kids on the weekend). Now that both children are on the Dad's return it is rejecting Mom as she still took the same dependent (which Dad has now put on his return). Dad said child was on the return but he didn't take any of the credits (EIP or CTC). Wrong - Dad got the EIP pmt for the child that is now on Dad's return that Mom normally has on her return. Now Mom cannot file (as her tax return rejected) unless she takes the child off her return. When I wrote this question I thought Dad had just put the second child on his return, but didn't take any credits. He clearly didn't take the CTC as its not marked or calculated on the return but he did get the $1400 recovery payment. Originally, I was thinking that he could just take the child off (since he said he didn't take any of the credits), but this did not turn out to be the case. Dad also claimed HOH and the children live with the MOM full time. As for the Tie Breaker rules Mom would get both children if they can't decide who is claimed on both returns.

Therefore, my original question was if Dad put Mom's dependent on his return, but answered the questions so he didn't get any of the credits or recovery credits and then Mom puts the same dependent on her return but takes the credits would Mom's return still be rejected because the child is still listed on both returns? 

[Sandra1]

Non-qualifying term I used was not correct. I was tryng to say that on the first page of Dad's return the box is not marked to take the child tax credit and the return did not calculate it. Dad really didn't think he got the recovery credit for the child either. So --- if Dad put a dependent on his return, but the return calculated no credits and then Mom puts the same child on her return would Mom's return still be rejected just because Dad has the child listed as a dependent also?

[sjrcpa]

Yes Mom's return will be rejected if she claims as a dependent the same child Dad claimed.

[qbteachmt]

"Wrong - Dad got the EIP pmt for the child that is now on Dad's return that Mom normally has on her return"

"Dad really didn't think he got the recovery credit for the child either."

Did you look? The Taxpayers can both access their IRS accounts to see what got issued. Remember that EIP was prepaid in advance of the tax filing for it. A 2021 entitlement was prepaid in 2021, based on a projection using the taxpayer's prior tax return on file. Since the Advanced EIP/RRC was paid out early 2021, the tax return used for making the payments would be 2019 or 2020. You now seem to indicate the Mom reported both kids.

"just because Dad has the child listed as a dependent also?"

"Just because" is a great way of avoiding that one of the parents has made an error. The second return filing with any duplicate dependent SSN will be rejected, because the SSN is already listed on a filed return. The facts and circumstances will drive which filing gets which info, but these Adults need to figure out their reality. You cannot try to force the IRS to recognize reality by filing bad info.

[TaxGuyBill]

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@Sandra1 wrote:

He clearly didn't take the CTC as its not marked or calculated on the return but he did get the $1400 recovery payment.

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I'm intrigued at how he received the Recovery Rebate but not the Child Tax Credit.

As was mentioned above, her E-FILED return will be rejected.  However, she could file by paper (if the IRS ever opens their mail).

Is Dad reasonable, wanting to correct things and willing to do what is best for the overall situation?  One possible option is for your client to give Form 8332 the Dad and have him to amend to claim both kids (including the child tax credits) and then share the extra refund with Mom (due to the Covid-related rules for 2020 and 2021, that would likely result in a better overall result than if each parent properly claimed one child) .  Your client would need to file by mail to claim Head of Household, EIC and Dependent Care Credit.

[qbteachmt]

Not claiming the CTC is not the same as not getting the Advanced payment for it, either.

The only way to know who is misleading whom is to tell them to provide their transcripts and agree to have it sorted out according to the facts, or stay out of the middle.

[Terry53029]

You state both children live with mom, and dad only has them on weekends. You are only doing the moms return, so don't worry how the dad files. your responsibilities are to file the moms return correctly. If your clients return was rejected, because someone claimed them on their return then you must paper file a correct return claiming both children (unless she wants to let the dad claim one with a 8332 form) She will receive all credits entitled to, and file as HOH if qualified. In your scenario the Tie Breaker rules have nothing to do with it. Also what dad does has nothing to do with anything, and she will be rejected again if she put a dependent on her return that is on another return already efiled. Just do your clients return, and it will have to be mailed in, and the IRS will sort it out (will probably take months).