Is it legal to claim a god child or newphew on your income tax?
If the child lived with him for over half the year, then he might be able to legally claim the child as a qualifying child if it's his nephew. For his sister's friend's son, not related to him, he could only claim him if the child lived with him ALL year and your ex provided over half of the child's support - and even then, claiming him as his nephew would be illegal (there's no category of "godson" to claim a child), and if he's claiming EIC for the child, that would be illegal even if he could claim him as a dependent. You could report him to the IRS. But odds are he's going to get caught anyway, and have to pay back what he got illegally plus interest and penalties. This year the IRS has been doing a lot of verification on people who claim nephews and other children not their own kids for EIC.
Claimed my nephews on my tax return!! Being audited:-/?
I filed my taxes a little over a week ago and just got an email saying that my return is being reviewed .. Message was : Irs.gov : We have received your tax return and it is being reviewed. You will receive a notice from us requesting additional information from you. When you receive the notice, please provide the requested information within 30 days. You may not receive all or a part of your refund until we receive and review the information we requested from you. If you need more information after you receive our notice, call the number on the notice So...what now? I'm a 22 year old female who earned aprox. $28,000 for the year 2012 I claimed my nephews (2) on my taxes because they're mother (who is homeless, not working and is taking drugs) does not support them in any way shape or form... Neither does the father of the boys. For the last 12 months I have been supporting them by myself. I am not the legal guardian but I pay rent, provide food, clothing, and all the everyday necessities for my nephews.... My sister (the boys mother) is aware that I am claiming them and does NOT have a problem with it.. Another point worth mentioning is that I pay rent to live in my parents home.. Up until a year ago I was paying $300 monthly for just myself but since I convinced my mother to let my nephews live at the house my rent was increased to $600 per month..plus I am responsible for a $500 heating bill for the home for the winter months... If I didn't convince my mom to let them move in, they would be couch hopping with their mother. So now my questions are... Why was I audited? Am I in trouble?!?! How do I prove I'm the sole provider for these kids? How long is this process.. And will I even get my full tax return!! All answers are greatly appreciated! Thank you and god bless
Can i claim my brother and sister on my tax returns?
If you are the only one capable of filing taxes, then you need to itemize what you spend and decide if you are providing over 1/2 of the support that your brother and sister receive. If you are, then you can claim them as your dependant, and at that rate of pay, you *should* be able to qualify for EIC (Earned Income Credit) and child tax credits. The only thing I am not 100% sure of is whether you can claim them or not because of not being their actual mother or legal guardian, and for that question, you should call a tax preparer and see what they have to say.
How long does it take the Irs to investigate tax fraud after filing a report?
I recently filed a report against my ex fiance, because he had been claiming his sister's friend's son for years as his nephew. However he is in no way related to the child, and the child has never lived with him. After collecting Earned income credit he would give a portion to his sister;s friend. I had all the detailed info to file the report, his social ,address,etc.. however I dont have any of the tax forms to prove this because those are in his possession. What other items could I get to prove this?I just basically wanted to know if they really investigate these type of crimes or do they only care if its a certain amount of income. Also what are the penalties for this type of fraud?
Can my co-signer deduct the interest on my student loan payments from his/her tax payments?
I made these payments, but she is the cosigner. Your sentence above says all I need to know. Generally speaking, you can only take an adjustment or a deduction for taxes/interest paid if 1. you actually paid the taxes/interest and 2. in the year the taxes/interest were actually paid.If you actually paid the interest, you are the one eligible to claim any adjustments or deductions from if. If your filing situation is such that you are not eligible, then that's the end of the conversation.If a co-signer actually paid the interest, that that person is eligible to claim any adjustments or deductions from it. If that person's filing situation is such he/she is not eligible, then that's the end of the conversation. Student loan interest adjustment is limited to $2500, so your actually tax benefit would be capped at $2500 X your marginal tax rate. In the grand scheme of things, this wasn't ideal - but at least you didn't leave thousands of dollars on the table (I have had many, many clients do exactly that because they "just didn't know").Going forward, I strongly reccommend having a conversation with a tax professional about questions you have like this well before tax season. Waiting until you buy and open TurbiTax is months and possibly years too late from a tax planning perspective.
Can I claim my brother for EIC if my dad isnt doing his taxes this year?
I am 20 years old, work part-time and go to school full-time. I have a younger brother in high school who doesnt work and goes to school full-time. My dad might not be doing his taxes this year (I know thats bad) and I have contributed about the same as he had in the past year for my brother, including his clothing costs, random school related costs (dad paid for books), allowance etc. TurboTax said that I could add him even though he is not my child/dependant. However, TurboTax so far is telling me that I am getting credit nearly $3000 for him but I have not spent that much money on him in the past year. If I do claim him on my EIC will this be a problem down the road? If I move out for college next year can my dad claim him on EIC then? If my dad decides to do his taxes and wants to claim my brother then I will give him the money that was credit to me but in the likely event that he doesnt do his taxes I would rather claim my brother than have no one get the EIC money...I just don't want to end up owing the IRS a crap load of money later on.
Help!!! I claimed 2 kids that wasn't mine on my taxes, and now i am being audited!!?
You are VERY unlikely to go to prison over this. But you're going to have to pay back the money you got illegally, plus penalties and interest, and they will most likely look at other earler years returns also so this will really add up. Not likely to $100,000, but won't be small - could end up double or so of what you got illegally, so probably many thousands of dollars. The IRS is auditing more and more claims of people to kids who aren't theirs, so it's probably not your age and theirs that got you flagged. The IRS is aware there's a very high fraud rate in this, particularly in EIC, so they're doing more checking. About all you can do now is just 'fess up to what you did - they aren't going to shoot you. They'll most likely put you on a payment plan (with interest of course) to pay back what you stole plus the penalties and interest.
I am being audited by the IRS?
I claimed two of my roommates kids on my taxes whom I did provide more than 50% support. I received the EITC and now I am being audited. Instead of filing head of Household I did my own taxes and put single by accident. The kids' father claimed the kids on his taxes first, then he amended the tax return. What do I need to do now? Yes I have lived in the same household for over 1 year with the kids. What can I do?
Why is immigration such a big deal? If people pay taxes and work, why shouldn't they stay even if they aren’t citizens?
A lot of Democrats say that illegal aliens pay taxes and should be allowed to stay. In my 35 years as a payroll I can guarantee yo that most don’t and are getting away with it. I’m in New Jersey so my numbers are less then the border states but it’s still a significant number usually 4 or 5 a year identified.Here’s how it works. An Illegal Alien can buy a stolen identity for $400 to $500. These Id’s are from states a couple of hundred miles away from the area to be worked in. The IA can now apply for a job with a complete ID in their pocket. they claim exempt status on their federal and state income tax forms. Payroll will run a social security check. But this will pass easily as long as you the birth date and name for the social security number. There are no other identity checks the employer can really use. So the AI goes to work for you. at the end of January you issue him a W-2 for the year. So lets postulate he made $30,000. Because he claimed exempt the only thing he had deducted $2,295 so he takes home $27,705. So the employer reports to the IRS that John Doe made $30,000 and had no taxes deducted. Now poor John Doe made $40,000 on his real W-2 and had $8,000 deducted. It takes the IRS about 8 to 10 months to actually match-up the earnings info with the 1040 return. So the IRS finds John Doe hasn’t reported all his earnings and sends John a letter saying he owes another $8,000 in taxes. After John gets home from the hospital for the heart attack the IRS letter gave him, they find the problem with the bogus employee. Now as the employer I have to go back and correct every bi-weekly, quarterly and annual report. So that kiddies is how how the Aliens are able to rip off the country,