how to correct child tax credit

[Terry O]

OK - -it was a moment - - -and I was NOT paying attention - -here's what happened:

Divorced parents - -I have the mom who is the custodial parent and filed her 2007 tax return - -due to arrangements, we did NOT claim her daughter as a dependent, but used her for the HH status and earned income credit. So far - -so good - - -

However, I did NOT UN-check the child tax credit eligibility ( that was on there from a previous year) and subsequently, the Mom gets the child credit - - -BUT NO dependence exemption for the daughter - -we did NOT claim her as a dependent on BOTH the 1040 AND NYS - - - neither caught the mistake, nor did the program!

Now, the father is upset - -because he is NOT getting the dependency exemption on HIS return - - - -or the stimulus $$ - --what a mess.

I honestly thought that by now the IRS or NYS would have sent the mom a bill - -but NOPE - -

Any suggestion so nt he quickest way to correct this - -OTHER than - -giving the guy the $$ - - -the Mom is sure he will take the $$ both from her and the IRS.

Thanks!

Terry O

[joelgilb]

OK - -it was a moment - - -and I was NOT paying attention - -here's what happened:

Divorced parents - -I have the mom who is the custodial parent and filed her 2007 tax return - -due to arrangements, we did NOT claim her daughter as a dependent, but used her for the HH status and earned income credit. So far - -so good - - -

However, I did NOT UN-check the child tax credit eligibility ( that was on there from a previous year) and subsequently, the Mom gets the child credit - - -BUT NO dependence exemption for the daughter - -we did NOT claim her as a dependent on BOTH the 1040 AND NYS - - - neither caught the mistake, nor did the program!

Now, the father is upset - -because he is NOT getting the dependency exemption on HIS return - - - -or the stimulus $$ - --what a mess.

I honestly thought that by now the IRS or NYS would have sent the mom a bill - -but NOPE - -

Any suggestion so nt he quickest way to correct this - -OTHER than - -giving the guy the $$ - - -the Mom is sure he will take the $$ both from her and the IRS.

Thanks!

Terry O

You will most likely have to file an amended return and the husband can file a paper return. And if Ex-Hub / father is upset... well your client will probably love that! Tell blame you and enjoy her ex's reactions! (wicked grin) :rolleyes:

[Terry O]

Thanks - -that's what I had recommended - - we'll see what happens!

[jainen]

>>>due to arrangements<<

What were the arrangements? You didn't mention Form 8332 or equivalent. That's the only "arrangement" the IRS recognizes. Without that, the father can't claim the exemption anyway, and with it he would have no problem anyway (except having to paper file). Whatever is on her return should not affect HIS return in the least. Tell him to get lost.

[Terry O]

I'm sorry - -I should have said that the Form 8332 WAS filed - - and the father DID have to paper file - -he is NOT being forthcoming about any refund from the iRS - -in fact, we do not know if he DID get any refund yet.

[jainen]

>>he is NOT being forthcoming about any refund<<

Fair enough. It's really none of your business anyway. File the amended return and THEN tell him to get lost.