Tax Law (Questions About Taxes)/Working 18yo daughter

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Question
QUESTION: My 18yo daughter was in a big hurry to get her refund and filed for herself. She lived with us the whole year and only made around $5000. I used TurboTax and listed her as a dependent on my return. The e-file was rejected stating a social security number used on my return was a primary or secondary on another return. Turbo tax rechecked the return and stated it was ready to be resubmitted, but I noticed my daughters info had not been altered. Do I have to omit her info, and lose the credit for her now, what are my options?

ANSWER: Joe,

It would appear from your description that she claimed herself as a dependent.  That would normally trigger the message you got.  Usually, if the child does not claim herself as a dependent, the return would go through ok.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: In filing her own return, wouldn't that make her the primary taxpayer on that return...not a dependent. And therefore ineligible as a dependent on my return? And, on a side note, any idea why turbotax would clear my return for resubmittal if nothing changed?

Answer
I don't use TurboTax so I can't answer that part of your question.

For the other part, she can (and should) file her return not claiming her own personal exemption, since you are entitled to her dependency exemption.  She is the only taxpayer on the return, but she does not have to claim her exemption. In fact, since she does not provide over half her support she is not entitled to it. It's not necessarily a big deal, but that's technically filing a false return.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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