8615

[helow]

TP filed his return and claimed his 7 yr son as dependent. TP got his refund back.

TP later brought me 1099 -DIV and INT from his son's trust. He was told to file 8615. I prepared the son's tax and there is tax liability of about $500. If the son claims himself, he will have no tax liability.

My qustion is: Can I file 1040X for the dad and remove the SON from the return so that the son can claim himself and avoid the tax liability? Dad's tax return will not be impacted. He will have the same amount of refund. Is this legally OK?

Thanks

Helow

[Lion EA]

If the son can be claimed by someone else/dad, even if no one else claims the son, the son can NOT claim himself.

[kcjenkins]

Lion is right, if the child is his dependant, then he can not claim himself even if the person who could claim him did not. So you did it right, and the son's liability just has to be paid.

[LindaB]

You could check and see if it would work out better if you amend Dad's return and add child's income on form 8814.

[Jill Kubiak]

Hi,

Were any of the dividends Capital Gain Distributions? Did you work through the worksheet on the tab at the bottom? I almost missed that on two of mine. (Brother and Sister) This dropped their tax considerably. The other two I have done for severl years now and they just never have had and capital gains so I didn't know the worksheet was there.

Jill

[helow]

Thank you all. I am going to tell the dad to pay the taxes from the trus. My other question is who is going to sign the 1040, the trustee or the dad who is the guardian. The trustee is saying she has to sign the return. The son lives with his dad and mom who claimed him.

Thanks

Helow