What if I Forgot to Claim Someone on My Taxes?
- Amending a federal tax return requires filing Form 1040X. The form doesn’t require you to prepare an entire tax return again; rather, you update the number of dependent exemptions in the appropriate section and update any other amount that will change from your original tax return because of it. When filling out the form, you will also need to report the name and Social Security number of each dependent and their relationship to you. Since your exemptions reduce your taxable income, you will also need to calculate the reduction in your tax bill. And if you don’t have any outstanding tax debts with the IRS, you will receive a refund for the difference.
- Whenever you amend a tax return to increase your dependent exemptions and it results in a refund, you only have three years to file the amended return. If you originally filed on or before the April 15 deadline, your three-year period begins April 15. However, if you file the original tax return after the deadline because you obtain an extension or just simply file late, the three-year period begins on the actual date you file. For example, if you want to amend the 2008 tax return that you originally filed April 29, 2009, you cannot amend the return after April 29, 2012. But if you file on April 12, 2009, you have until April 15, 2012 to file the 1040X.
- Before amending your return, you must first assess your eligibility under the qualifying child rules if the person is your natural child, stepchild, foster child, sibling, stepsibling or a descendant of any of them. Qualifying children must be younger than 19 or younger than 24 if the dependent is a full-time student at the end of the tax year you’re amending. Moreover, qualifying children cannot provide more than half of their own financial support and must reside in your home for more than half the tax year. In the event you cannot claim an exemption under the qualifying child rules, only then should you evaluate your eligibility under the qualifying relative rules.
- A qualifying relative can be any person of any age, regardless of whether a familial relationship exists. However, individuals who are not one of the family members listed in IRS Publication 501 must reside with you for the entire tax year in order to be your dependent. For all others, their place of residence isn’t relevant. As of the time of publication, qualifying relatives cannot receive $3,650 or more of gross income during the tax year and you must be responsible for providing more than half of their necessary financial support to claim them.