Don't let your dependents delay your tax refund!

A dependent can make a fairly common mistake on his or her tax return that can significantly delay *your* tax refund.

Here’s a fairly common scenario. A student (high school or college) worked part time in 2013, but was still his or her parents’ dependent. Student is anxious to receive a refund of his or her tax withholding and files a tax return in early 2014. Parents file their tax return later in the tax season and it is rejected by the IRS. The reason?  The dependent incorrectly claimed a personal exemption. The parents’ return and claim for refund is then rejected because they are claiming an exemption that has already been claimed.

This can be fixed. The dependent must file an amended return and *not* claim a personal exemption. The parents must wait until the amended return is processed before they can file their return.  Everything will work out correctly, but there could easily be a ten week delay, or longer. Please be sure to discuss this with your dependents; if they are still your dependent, they are not entitled to a personal exemption and should not attempt to claim it on their tax return.

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Please visit my website for additional articles and information on tax related issues.