plrraz
Level 3

Client is filed single, no dependents in 2020. His fiance, mother of their child filed a return last year (head of household, claimed their child) - They both used TurboTax.

(I believe they did that incorrectly, as under the tie breaker rules, he should've been the one filing HOH and claiming the child, but I don't think they want to amend, and will likely not understand, in fact, I may just tell them to go elsewhere, lol)

This year, the girlfriend did not work, and boyfriend provided all support. Great - he can file HOH, claim the child, and also claim her as an Other Dependent.

She received advance of child credit.  At first I was thinking - well, I'll just input that amount as having been received by the tax payer, and shazaam, everything will be just fine. Then my brain engaged - I don't think that will work (nor is it the correct thing to do).  

Is the correct thing to do, have the BF file HOH, claim the child, and the GF as Other Dependent and then list 0 as being advanced to HIM? Then he gets the full credit on his return - and SHE needs to return the advance of her credit, as she was not entitled to it?

How do I get that advance sent back to the IRS on her behalf (I will also look this up, but I was just wondering if anyone else has dealt with this). Do I file a return on her behalf, with no income (well a couple dollars of interest income so that can be efiled) with her not claiming the child, so that it shows she needs to send the advance back?  

Have I mentioned that I HATE these advances? Had a client call me on Sunday RANTING that she received received the advance and used it for "household expenses", and now that money was gone, as somehow I was responsible for that.

 

 

0 Cheers