My girlfriend claimed at least two children on her taxes that are relatives. The kids are American citizens but their mother is an illegal alien. They have never lived with us and she has never actually provided the children or their mother any financial assistance.
She told me she was going to do it last year and I got mad and thought I had convinced her not to do it. She said she wouldn't. A few days ago I find out this year she did it for this year's tax return. (I wasn't snooping, I was sitting next to her and picked up the tablet to look up something else and she had left her return status open... it said head of household.)
She probably did it last year too, but I have no proof. Basically she keeps saying that she wasn't lying to me because she only told me she wouldn't do it last year and said nothing about this year. She also doesn't think any of this is wrong.
I'm willing to bet she not only got the credits for the kids but also got a significant amount of her federal income tax back that she would have had to pay. She only plans to give the mother like $1200 for the credits. I'd say she makes around 40k a year, and does not attend school or have any 'real' dependents. Yet somehow her tax return is over $7,000.
I'm mad that I was lied to and that she thinks what I believe is essentially theft from the American taxpayer is ok. I'm really thinking about reporting her, which would essentially end our relationship but I just can't stand it when someone takes money that isn't theirs. I really can't stand it.
I don't want her to go to jail, I also would rather not start something that could result in her aunt being deported. I just don't want her to have something around $5k that isn't hers and I want her to stop.
I know this is more of a philosophical/emotional topic and less about taxes. Any insight into how the reporting/audit process goes and whether or not what she's doing is actually as illegal and wrong as it seems would be helpful.