He went to file his taxes online and found that "someone" else had already claimed him as a dependant. My son is not a student and not a dependant of anyone. He called in a panic wondering what to do about his taxes.

Obviously my ex has committed some sort of tax fraud. My son was counting on his refund which at this time he can't get.

What should my son do from here?

Your ex will most likely get a audit and some king of penalty or fine. Let him worry about it!

You would need to provide more info to know if your son qualified as your ex's dependent.

I'm guessing your son tried to file electronically and the IRS rejected the return because someone claimed him as a dependent. The IRS will not (due to confidentiality laws) tell him who claimed him as a dependent.

If your son wants to contest it and claim himself then he will need to mail in his return. As partst says the IRS will send a follow-up letter to determine who is correct and the other one will have to pay additional taxes, penalties, and interest.

I told him to send a letter with his return stating all of the above. No quick way anyone can think of? He thought he was getting a refund within a month and had the money almost spent. There is, of course, a lesson in every thing that happens to you.

Based on the above no one should be claiming him as a dependent. He will need to mail-in his return and wait for the refund. Often the IRS will send the refund as normal and then the IRS will follow-up with both parties to see who filed incorrectly. Sometimes the follow-up is within a month and sometimes as long as 2 years later. I wouldn't bother saying anything to ex ... just let him think he got away with it and let the IRS hit him up for the back taxes, penalties, and interest.

It gives the father a graceful out in terms of righting the situation.

Then it'll be up to him what he does about it - but he's had a heads up from someone with whom there's ordinarily supposed to be connections and a measure of loyalty.

There's also validity to the point that he knows the law and has transgressed it ... he has made his bed, so it's up to him to lie in it.

ole joyful

I haven't ever heard of random people claiming strangers as dependents on their taxes. It seems like an odd way of committing fraud, since you only decrease your adjusted income and therefore taxes owed; you don't get a windfall.

(is it possible that dad doesn't realize the son will not get his refund bcs of this? Maybe dad thought the only party affected would be the U.S. govt? And so dad didn't think he was actually stealing from his own kid?)

And help your son figure out what he'd need to prove that he is not his dad's dependent:
-rent receipts and utility bills from the entire year, to prove that he paid for his own roof
-ATM-card records to show that he bought groceries often from a grocery store near his home, to prove that he paid for his own food
-pay stubs, other work documentation to prove that he was occupied full-time and therefore not a student

If he doesn't have any of these things, he can substitute letters (notarized!) from the appropriate people--landlord, boss, roommate.
"Junior was a full-/part-time employee who worked X hours a week, from Start Date to December 31, 2006"--especially if he doesn't have pay stubs w/ hours worked, etc. Also to prove he wasn't a student.

Have him put it in a folder, and label it, etc., and find a place to keep it so that he'll find it when he needs it. (I keep all receipts, etc., from every tax return in a folder w/ the return itself--just in case)

Another thing perhaps, to help w/ the immediate crisis, is for someone who could be a go-between (paternal uncle? paternal grandma? you?) to call the dad and tell him he needs to give his son some money to make up for the fact that he has stolen his kid's tax refund.

I know you're using the term "adult" lightly, and in this situation, you *should* use it lightly. Things like this are hard for kids to learn while they're still "kids" and being taught by their parents. This sort of grownup-finances stuff is why parents' work isn't done just because a kid turns 18.

This could be a good lesson for him in how to prepare documentation for court, in how to keep records of finances, etc. (all the best lessons hurt, unfort.)

I wonder if your son could take him to small-claims court for the amount of the refund? print out the reply from the IRS, ask his brother to testify to the conversation? The ideal would be if he could get his hands on his dad's tax return; I don't think you can subpoena documentation for small-claims court.

I got this in an email from him yesterday

"I used Matthew as a dependent this year for taxes. I paid him the difference between what he would have gotten back if he hadn't been someone's dependent. I sent the last part of that to him earlier this week."

I wrote him back and told him he couldn't have been his dependant as he lives 1500 miles away and didn't set foot in his household in 2006. He and his girlfriend DID come visit but didn't stay with him.

I haven't yet rec'd a reply.

Your son's integrity needs to remain unblemished.

Lying to the IRS is highly risky, carries serious consequences, and is illegal.

Did your son file his taxes yet? Did your son file claiming himself or as a dependent?