What to Do When a Family Member Claims You or Your Children on Taxes and Takes Your Stimulus Check

When a family member improperly claims you or your children as dependents on their taxes and takes your stimulus checks, it can be a distressing situation. Here's what you can do to navigate this issue and ensure your rights are protected.

Understand Your Status

To determine if you qualify as a dependent, it's important to understand the IRS guidelines. The rules are specific and can vary based on age, income, and residency status. Common criteria include: you must either be a child under the age of 19 (or 24 if a full-time student), a foster child, or a relative or stepchild who lived with you for more than half the year. If you have earned income or live independently, you might not qualify as a dependent. Knowing your status can help you take the appropriate steps.

Gather Documentation

Collect all relevant documents that can support your claim. This includes tax returns from the previous year, correspondence related to the stimulus check, and any communication with your family member regarding the situation. Keeping thorough records can be crucial for any legal or financial actions you may need to take.

Contact the IRS

If you believe the family member has falsely claimed you or your children, you can report this to the IRS. IRS has processes for reporting suspected tax fraud. You may need to fill out Form 3949-A to provide detailed information about the alleged fraud.

File Your Own Tax Return

Even if the family member has already claimed you or your children, you can file your own tax return. If you meet the criteria for a dependent, you may be eligible for a Recovery Rebate Credit. Filing your own return can help you secure any rightful benefits that were taken from you.

Consult a Tax Professional

Given the complexity of tax laws, it's advisable to consult with a tax professional or accountant. They can provide personalized advice tailored to your specific situation. Tax professionals can help you navigate the legal and financial aspects of the situation, potentially recovering any lost benefits.

Consider Legal Advice

If the situation escalates, it might be beneficial to consult with a lawyer who specializes in either tax law or family law. Legal experts can help guide you through the complexities of the law and ensure that your rights are protected.

Communicate with Your Family Member

If it is safe and appropriate, you can attempt to discuss the situation with your family member to understand their perspective and possibly resolve the issue amicably. However, it's important to gather all the necessary documentation and be prepared for the possibility that a legal or formal resolution may be necessary.

It's crucial to act promptly. Failing to address the issue can result in loss of benefits and complicate your financial situation. Taking the appropriate steps can help ensure that you and your dependents are treated fairly according to the law.