Personal Finance & Money Asked by Duke Nukem on October 31, 2021
Earlier this year, I submitted my 2019 tax return, leaving "Someone can claim you as a dependent" unchecked, in order to claim the 2020 stimulus check.
It turns out that my parent normally claims me as a dependent on their tax return. Now, because of me receiving a $1200 stimulus check, they will be overpaying on their taxes by more than $3000 because they can’t claim me as a dependent!
With me as a dependent, the standard deduction they could take this year is $18300 (Head of Household), but otherwise, the standard deduction drops to only $12000 (Single).
Is there any way for me to resubmit my 2019 tax return with "Someone can claim you as a dependent" checked and send back the 2020 stimulus check so that my parent can claim me as a dependent?
About my dependent status:
Apparently, since I live with my parent the whole year (and thus, the parent pays for my housing), they can claim me as a dependent on their tax returns, which allows them to file as Head of Household. Being over 21, I figured I cannot be claimed as a dependent, as I’m now an adult. Me and my parent file our taxes separately and never actually discussed this.
First of all, you have already submitted your tax return, so the deadline tomorrow does not apply to you. That having been said, you’ll want to get this straightened out ASAP.
If your parent is going to claim you as a dependent on his or her tax return, then you will need to file an amended return. This is a Form 1040X. On this return, you will calculate all the changes between what you originally claimed, and what you are now claiming. This may impact the amount of your tax, so you may have to send in some extra tax money with this, or return some of any tax refund you received. (I’m not talking about the stimulus payment yet.) There may be a small penalty and interest charge associated with this if you do owe some money and do not get this done by tomorrow.
As for your stimulus payment, there is a way to return this payment, but it is not part of your tax return. The IRS lists the procedure on this page. If you’ve already cashed the check or received it via direct deposit, you can mail a check to one of the addresses listed along with a note explaining why you are returning it. Explaining that you incorrectly checked the wrong box on your return and that you have corrected this on an amended return should be sufficient.
I do want to point out at this point that while you and I agree that this money was obtained by your own error and that it should be returned, there is currently no penalty for not returning a stimulus payment sent by mistake. This may change in the future, so if you choose to wait, don’t spend it for quite a while. You would want to have the cash sitting there ready to send back right away if and when they come asking for it.
Answered by Ben Miller - Remember Monica on October 31, 2021
If you are actually a dependent, then you can file an amended return using a form 1040x.
Make sure you read up on what actually makes you a dependent vs not before doing this to avoid committing tax fraud.
Talking about what your parents will get if you file an amended return vs not is a red herring. It has nothing to do with the central issue of whether or not you're actually a dependent and if you are, what to do about it.
Answered by Karen on October 31, 2021
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