OT - Help Please-teenage daughter leaving nest & wants our tax refund

My teenage daughter (who turns 18 in 2 weeks) is upset with us, claiming that we are screwing her out of money she earned.  She's newly engaged to be married and is saving all her earnings for her future with her husband to be.  She insists that is not fair or right that we should put her on our tax return.  She filed independently last year, unbeknownst to us until afterwards, and when we filed our return last year claiming her, the IRS rejected it because she had already claimed herself.  Needless to say, tse was not very happy to return the money and feels that her dad is being greedy. 

No.  We're following the law because it's fraud for her to claim herself since we fed,clothed and sheltered her for the past 18 years. 

It's not a very pretty stalemate.  Any suggestions would HIGHLY be appreciated...even if its just to verbally hit me upside the head for raising a child with such a sense of entitlement.

Does she have a job?  If so, then there are taxes being taken out of her paycheck, and this is why she's mad.  Because she cannot get her refund.

I don't have any kids and I didn't have a job until I was in college, so I don't know how this works.  

I did find this article, maybe it will point you in the right direction.
http://www.investopedia.com/articles/taxes/08/kids-first-inc ome-tax-return.asp#axzz1gkqX5Gsg 

Hopefully someone else knows more about this, and can help you better than I can.

Anyway, hang in there!

At 18 she could not have made that much. when our daughter was 18 we claimed her because she lived here and we supported her all year, she was able to save all the money she made. We claimed her because we came out a lot better claiming her then she would have claiming her self.  I gave her the amount of money  she would have gotten if she claimed her self  it was about 400.00 and I still came out way ahead. I say claim her and you decide if you want to give her any of it. when she pays her bills on her own then she will be entitled to all of it

If she is living under your roof and you supported her financially (I believe it's 50% of her support but it culd be less) and she is under the age 18 for most of the year then you are legally entitled to the dependent deduction on your taxes.  Your daughter committed tax fraud by claiming herself on her taxes because she would have had to answer YES to the question "are you responsible for 50% of your support". 

My daughter was in college and I claimed her on my taxes till she was 20 because I felt I supported her financially.  The first year she claimed herself she lived on her own all year (she didn't come home for summer).  I do our taxes and I told her I think you deserve to claim yourself this year....she was very excited!!!!


As far as suggestions if your daughter is willing to sit down and talk like an adult...I would sit with a pen and paper and write down all of things you pay ( I would include utilities) food, gas, medical bills, school, clothes....on and on.  and have her write down the stuff she pays for.  AND it has to be for SUPPORT so no writing down video games, trips to the mall...stuff like that.  Then add it up.  See who pays more.  If that doesn't work take your list to H & R Block and have a professional settle your argument.  Tell her if she goes behind your back again you will call the IRS on her...see if you can scare her.   

A child under 19 can not legally claim themselves unless they are an emancipated minor.  However, if she made more that $5700, she still has to fire a tax return (though she should file them anyway, because she will get back anything she put in).  She just would not check Single, married, or HOH.  There is a little box to check if someone else can claim you on their taxes.  She can't get EIC or anything, but still, she will get back everything in the Federal box on her W2.

i wouldn't let this filing come between the relationship between you/husband & your daughter.   surely you can sit down and work something out.

i'd encourage her not to get married @18 VS deciding who is going to claim who - but i'm not a parent:)

as the parent of a 17 year old and not being the super fluff bunny type....

I would say "SURE! you can file...but you need to understand the parameters....we get to claim you because we are feeding, clothing and housing you.  IF you truly want to file seperately for the 2011 tax year, that's fine...BUT, you need to reimburse us for:

Rent @xxxx/month
Food@xxxx/month
Clothing
Medical expenses/insurance
phone@xxxx/month
cable@xxxx/month.

THat, my dear sweet little child, would then make it more "fair and even".

If she feels she's old enough to be engaged and to get married....then she is surely old enough to assume the expense of her living >

Please understand, i'm NOT a fluff bunny parent.  I love my kids, they come first....but teaching responsibility is something i do take very seriously. 

Betsey

I agree with Betsey if she really wants to go this route and getting married at 18 then she needs to learn how it is in the real world without mom and dad paying for everything .  Charge her for all those things that Betsey listed .

When I was 18 my parents charged me for all them things to teach me responsiblity and how it really was in the real world .  It was a great lesson and a very hard lesson to learn.

Hello. I am so sorry you are having to deal with this. I'm only 4 days banded, but at least I can help here. I am a tax advisor & office manager w/ H&R Block, and unfortunately we see situations like this a lot. The bottom line is that if your daughter is under 19 on 12/31, lived with you for at least 6mos in 2011, and did not provide more than half of her own support, you are the only ones who have the right to claim her. She is not supposed to. The only way this changes is if she marries husband to be before the end of the year and they then file a joint return.

Last year, the IRS rejected your electronically filed return because she filed first, but you could still have filed the return by mail. What happens then is that the IRS decides who gets the dependent. They send out letters to any people who claimed that dependent SSN and give each one a chance to change their return. If no one amends, then the IRS requests supporting documentation (i.e.; school records, where she lived, copies of bills, etc.) and they determine who has the right to claim. The hardest situation is usually when divorced parents are fighting over a child. In your case, I would expect it to be fairly routine - I might even send in a letter with some supporting docs with your initial return if she efiles first this again.

Of course, you will need to weigh whether the $365-$915 tax savings is worth the strain on the relationship. What sometimes works for my clients in similar situations is coming in toghether to the tax office and having a 3rd party tax professional explain the legal options to everyone - that way it's not you against her. The tax pro could also review the benefits she could receive from filing correctly now and not attracting IRS attention. If you'd be interested in this option, I could help find an H&R Block taxpro in your area who would do well for you. 

Whatever you decide, good luck!

Um... yeah. I prepare tax returns and this type of thing happens frequently unfortunatley. You could try presenting it to her that checking the box stating no one else can claim her as a dependent is FRAUD.  

Good luck to you  and I hope you can work this out.