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Dayumet · Dec 19, 2012, 03:40 PM

My grandson was born in Feb, to my 17 year old daughter. My daughter and grandson lived in my home until Thanksgiving. My husband and I paid all the bills and provided for both of their needs during that time - WIC provided formula but other than that we did not receive any outside assistance in our support. My daughter did get a job in fast food for a few months but her money usually went toward her life and friends while we continued to buy the diapers etc.

We have been quite clear with our intentions to claim them both as dependents on our 2012 taxes. Unfortunately my daughter just notified me that she intends to claim her son on her taxes. It definitely seems unfair to me, but I need to know where we stand on this before proceeding. My Tax accountant is on vacation until the New Year so any advice would be greatly appreciated. Who has the right to those deductions?

AtlantaTaxExpert · Dec 19, 2012, 04:01 PM

Since you provided more than half of their total support (a fact easily proven based on your post). You and your husband are entitled to claim them both.

However, if SHE claims herself and her child, she may be eligible for the Earned Income Credit and the Child Tax Credit, so the net effect may be a larger refund for her.

Sit down and discuss this with her and your tax accountant, then work it out to everyone's satisfaction.

Dayumet · Dec 19, 2012, 09:13 PM

Thanks for the prompt response A.T.E.

I do not think she earned enough income to qualify for E.I.T.C. considering she averaged about 15-20 hours a week at minimum wage for only 4 months.

Unfortunately, she and I are not on very good terms at the moment. She has since quit her job and moved in with the baby's daddy (who is also unemployed). I know she needs the money but she needs to learn to support herself without taking advantage of others. After everything that she has done, I feel as though I must stand up for my principals.

I do know that we can in fact claim her as a dependent. Am I mistaken that if someone can claim you as a dependent then you are not legally able to claim dependents yourself?

AtlantaTaxExpert · Dec 20, 2012, 06:28 AM

You are correct. If you claim her as a dependent, she cannot her son as a dependent.