Our grandson, 7 in two weeks, lives with us and has for most of his life. We have never claimed him, but feel we are completely entitled to the exemption for him. His natural father does not provide any support, his mother paid for his health insurance last year (aprroximately $1,000) and paid about $400 for aftercare early last year. He lives in our home full-time (he sees his Mother most weekends, spending Saturday night with her). We pay his medical bills, housing, clothing, school and social activities - everything.

We have joint legal custody with his mother. We have primary residiential custody and she had secondary residential custody. There is no question of his actual residence, she doesn't even live in the same county we do (where he attends the neighborhood school and activities).

Are we entitled to claim the federal tax exemption for him?

Thanks,
Gail

Yes, you can claim your grandson as a tax exemption and even receive the child credit for him. He lives with you and you provide more than half of his support. Make sure that his mother is not claiming him or you will be audited for sure and possibly end up owing the IRS some money.

His mother said she's going to claim him, that it's her money and refuses to discuss it. However, she does not contribute to his welfare (we've actually had to obtain private health insurance for him). Our tax return is squeeky clean, so we aren't really worried about an audit. We simply need to know if we're legally entitled to the exemption. We had been told that she's not entitled to it and we are, but want to make sure we're on pretty solid ground before we file.

Thanks,
Gail

Gail:

You ARE legally entitled to claim him. This is clearly spelled out in Table 3-1, page 26, IRS Pub 17 if you want to check it for yourself.

His mother said she's going to claim him, that it's her money and refuses to discuss it. However, she does not contribute to his welfare (we've actually had to obtain private health insurance for him). Our tax return is squeeky clean, so we aren't really worried about an audit. We simply need to know if we're legally entitled to the exemption. We had been told that she's not entitled to it and we are, but want to make sure we're on pretty solid ground before we file.

Thanks,
Gail



I see what she is trying to do and I say that since you are the one that is entitled to the exemption, claim your grandson and if she does also, then report her to IRS fraud. Since you are the ones that are taking care of him it is legal and only fair that you get to reap the tax benefit from it.:D :D

Deeva:

I see. So you want Gail to send her daughter to jail over a $3,400 tax exemption?

Deeva:

I see. So you want Gail to send her daughter to jail over a $3,400 tax exemption??

AtlantaTaxExpert:

You see, it is not about going to jail. You are the tax expert so you know that the IRS will only audit her and she would have to show proof of her providing for the child. If she has already received some money, then she will have to pay the IRS their money back plus penalties and may be disallowed to claim the child credit again for some time. Fair is fair and wrong is wrong. Obviously Ms. Gail needs or wants the tax exemption and she is entitled to it so she should get it. That is my take on things. I did not tell her to report her daughter, I simply suggested that she could do it. In the end, it is her decision on what she wants to do and how she is going to go about doing it. I am a firm believer in looking out for family and all of that, but like I said before, right is right and wrong is wrong.

Hey, You should have been claiming him, the day he started living with you, because you you are the ones actually taking care of him. Anyone else who tries to claim him will be audited. The IRS looks for school records, and doctor records, and since he lives with you, you should have that information.

hey, You should have been claiming him, the day he started living with you, beccause you you are the ones actually taking care of him. Anyone else who tries to claim him will be audited. The irs looks for school records, and doctor records, and since he lives with you, you should have that information.

That is what I am saying. Since she has been taking care of him, then she is entitled to it and if anyone else claims him (his mother included) then they will get audited for sure. I haven't heard of anyone going to jail after getting audited. I have heard that the IRS gives them a specific time to send in any records that they have to prove that they indeed took care of the child and if not, then the person doesn't get the money for the child and is then punished by not being able to claim the credit again in the future for some time. I thought that maybe it was just an Ohio thing, but I guess not because you are basically saying the same thing.

Noted!

ATE has a point here. I think there is no question but that the OP can and should claim their grandchild and that the mother has no right to. But that there are penalties for tax fraud. Since the daughter has been informed of the law, for her continue to claim the child would be fraud.

While it may not lead to jail, it would go hard on the daughter. So the OP needs to weigh the consequences of fighting for the exempltion vs the value of the exemption.