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what happens when you claim kids on your taxes but u dont have custody?

Asked by: bustermcleod 1491 views YA Discussion

What happens to a person who claims 2 kids on their taxes but does not have full custody and does not have legal right to claim them? They only have 12 hour visitation a month. What is the punishment for that?

7 Answers

  1. Quick Answers on Nov 06, 2012 Reply

    Generally the audit gets them (since the rightful person is going to file too). Then they are barred from claiming EIC for 10 years.

    Earlier this year, the IRS was adding a 20% penalty on the money they tried to get whether they got it or not.

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  2. Wayne Z on Nov 06, 2012 Reply

    That person would have to pay back any of their refund related to claiming the children plus interest and penalties.

    If part of that refund was EIC, they could be banned from receiving EIC for up to 10 years.

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  3. rtfm on Nov 06, 2012 Reply

    If the custodial parent wants to, they can give the non-custodial parent permission to claim the children. They do so by giving the NCP a signed IRS Form 8332. So it’s not necessarily illegal of the NCP to do this.

    If the custodial parent does NOT want the NCP to claim the children, then they need to file their own return, claiming the children as they ordinarily would. If the NCP has already filed their return, then the CP will need to file a paper return by mail.

    When the IRS sees that two people have claimed the same dependents, they will investigate. They will allow the deductions to the parent who is entitled to them (the CP), and they will take back any money the NCP has claimed fraudulently, plus penalties and interest.

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  4. Bash Limpbutt's Oozing Cyst© on Nov 06, 2012 Reply

    If the custodial parent gave the non-custodial parent a completed Form 8332, nothing happens since that gives them the exemption(s) and the Child Tax Credit.

    Without the 8332, assuming that the custodial parent files and claims the children, the claim by the non-custodial parent is denied and if they have already received their refund they will most likely have to pay some of it back plus penalties and interest. If that refund included claiming the EIC, they would be banned from EIC claims for 2 or 10 years at the discretion of the IRS. It would be 2 years for flagrant disregard of the rules or 10 years if the IRS believed that it was fraud.

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  5. Judy on Nov 06, 2012 Reply

    There are several situations where someone without legal custody can legally claim a child.

    If someone claims a child they are not legally allowed to claim, they have to pay back anything they got for claiming them plus interest and penalties, and if they got EIC, they not only have to pay it back but are banned from getting EIC for up go 10 years even if they legally otherwise qualify.

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  6. Bobbie on Nov 06, 2012 Reply

    Pay back the incorrect amounts of the REFUND that was received plus the interest and the penalties that will be included in the total that is owed at that time and then you might be barred from claiming the EITC amount for a 10 year period at that time in your life.
    Hope that you find the above enclosed information useful. 11/05/2012

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  7. Max Hoopla on Nov 06, 2012 Reply

    If the child does not live with you more than half the year you can’t claim an exemption for them unless the parent who is entitled to the exemption gives it up with an IRS Form 8332. If you do claim the child IRS will probably catch it and make a “correction” to your return.

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