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Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 3 Issue 125 August 10, 2001
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 3 Issue 125 August 10, 2001 |
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» From: Somewhere in California Dear TaxMama, In 1999 Jack and I both claimed both our children. We all live together but have never married, although we have been together for 15 years, would common law be be an option in California? Anyways, I made little money, $8,000.00 because I lost my job in March of 1999, I also received $4,500.00 from unemployment. Jack claimed the max. during the year because money was tight and only got a return of about $700.00. He claimed head of household and both children, electronically through H&R Block. A few weeks later I went to H&R Block only to find out I was going to owe around $1,400.00 or more. The tax preparer told me the children had already been claimed and that I might fall into a loophole in addition to the fact that Jack had no legal right to claim them with out my permission...? She wound up figuring my return for $4,000.00, charged me $98.00 and gave me everything in an envelope and had me mail my return in. My status was Single with earned income credit. Jack and I both got our returns and only 2 weeks ago did we each get a notice from the IRS that someone else had claimed the same children the same year (ourselves) and that we had 30 days to provide the requested documentation. I just became re-employed a month ago and don't know what we should do. We wanted so badly to buy a house this year. Should we/I file a revision? What should be expected? etc.... Thank you in advance for your response, Lori  Unfortunately, California is not a community property state. So you can live together for life and not accrue the kind of marital benefits that are automatic in some other states. Under NO circumstances should you EVER both claim the children. There is no loophole - there is just - getting Jack into trouble for claiming children he isn't entitled to. (Why isn't he entitled to claim them if they are also his children and live in his home?) That was criminal advice you got! I am furious that a tax professional, especially one from a large, reputable company would dare to give you advice like that. You don't need to file an amended return. Just reply to the notices. Since you took an earned income credit (EIC) on your return, I suggest you make that the return that is CORRECT. If you don't, there are some pretty heavy consequences for EIC fraud. You won't be able to use that privilege for 10 years. And it may mean that Jack gives up the children on his return. This may cost you a lot more than you had intended. You may want to go back to that nice H&R Block office and have them help you fix this mess. Please, please .... don't get involved in committing tax fraud. This kind of thing ALWAYS gets caught. And you are the one who suffers the harm - not the sweet, helpful, little preparer. And, with your new job, maybe you'll just buy the house next year. Best wishes Eva Rosenberg Your TaxMama Click Here for TaxMama's Honor System |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2003 - Eva Rosenberg |
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