Taxpayer Claiming Married Child as Dependent

I have received an e-file reject code of 509 sequence 175 on a return I am filing for the taxpayer I'll call (T). I called the IRS e-file help desk, and they tell me(T) must paper file the return with form 8948. Because of this, I just wanted to be sure I am thinking straight.

19 year old daughter (D) lived with the (T) most of 2010. She was a full time college student and (T) paid for her qualifying tuition and books and most of her support. Late in 2010 (D) marries Son-In-Law (SIL). Everybody is in agreement to file in a way that is the most advantageous to the family as a group. This would be with (D) as a dependent of (T).

D has $5,700 in W-2 wages and $600 in SE income (she kept books at the local softball field....and this should be W-2 income, but will save that rant for another time). The only tax she owes, when filing MFS and showing herself as a dependent of another, is $91 in SE tax. She does not qualify for the Make-Work-Pay Credit because she is the dependent of (T). The MFS return has already been accepted by IRS e-file.

(SIL) has $6,700 of W-2 income with no withholding. He is not a dependent of any other taxpayer. When he e-files as MFS he gets the Make-Work-Pay credit of $400. The return has already been accepted by IRS e-file.

Now that I am ready to e-file (T's) return, I am getting a reject code 509 because (D)'s SSN has been used as a spouse SSN on another return.

Do you agree that (T) can take (D's) dependency exemption even though (D) is married but filing separate?

Reply to
mammondee
Loading thread data ...

She is T's qualifying child assuming she did not provide more than half her own support for the year. Send in a paper return.

Reply to
Arthur Kamlet

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.