Parents- Talk to your children about the dangers of claiming exemptions

So there you are, as happy as can be, bringing home that little bundle of joy. And before you know it, your little bundle is off to college.

You prepared Jimmy as much as you could and are checking on him often; are you eating well? getting enough sleep? doing your homework?

You are gleaming with pride, thinking all your hard work is paying off, until you hear your tax accountant say those terrifying words: The IRS rejected your E-Filed tax return. Your dependent has already filed a tax return claiming himself. :O

Through the panic, you suddenly remember that part-time summer job they had right before leaving for college. How could your perfect angel do this to you??

Your ears refocus you on the accountants voice just as the words “can no longer claim tuition credits” seep through the phone (But you’ve paid HOW MUCH last year for this college that HE wanted?!?). The accountant keeps rambling about amending this return and paper filing that return… If only this could have all been avoided!

Don’t worry! There was a easy solution. Jimmy could have still filed a tax return to get his refund, without ruining yours, by simply checking the box “claimed as a dependent by someone else.”

Don’t let amendments happen to you. Talk to your kids about exemptions.