How to fix "someone can claim you as a dependent" in 2018 1040X?

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1

How to fix “someone can claim you as a dependent” in 2018 1040X?

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Thanks for replying to my threads. Here is the background. My son's 2018 1040 return

"someone can claim you as a dependent" left as blank (not checked). It was file ago.

“As we filed our return, where we claimed him as dependent, because we supported him on tuition/living. We have his 1098-T in our return. Our 1040 efile was rejected by”

IRS with Code - 32-FD-IND-517-01 for 2018 1040.

Dependent listed on your tax return has claimed themselves on their tax return

I researched on above subject, where the fixes suggest:

  1. Print the return and file as paper return

  2. Amend (1040X) my son’s return to fix “someone can claim you as a dependent” as yes

My son is in college and earned 3600 from research grant/TA for 2018.

I did process his return as 2018 1040X via tax software with “someone can claim you as a dependent” as yes .

It changes all numbers and apply 2440 as standard deduction in 2018 1040X line 2. It shows tax liability now.

I find

A tax return is necessary when their earned income is more than their standard deduction.

What is going on here?

Are there any special treatment for College student earnings from research grant/TA for 2018?

How do I handle this tax liability in his 1040X?

Thanks for guidance.

2

https://www.irs.gov/taxtopics/tc421

http://pfforphds.com/prepare-grad-student-tax-return/

Hope they help.

My D is a dependent and usually owes some $ for scholarship “income”.

3

Thanks for your pointers, but that piece addresses the Grad student tax return.

I am looking for under graduate tax return. My son’s return has "“someone can claim you as a dependent” yes.

We claim as dependent in our tax return and 1098-T related credit shows up in our return.

We support his living in College.

My son is in college and earned 3600 from undergraduate research grant/TA for 2018.

Thanks for your guidance.

4

The only way to fix your reject and you to claim him is for you to paper file.

5

I don’t think it matters if he’s grad or undergrad, a grant is a grant. If it is used to pay tuition/fees it’s one thing, if it’s for room and board it’s another (and taxable, after his standard deduction). Not sure why it says his standard deduction only $2440 though.

6

Thanks . Here is an update. My son has W2 and 1099-MISC with $ in box 7 (non employee income). The tax software did not treat 1099 as earnings , that cased the standard deduction worksheet to exclude 1099-MISC $ and put 2440 as standard deduction and created tax liability. I did find an undocumented feature of tax software to make this 1099-MISC box 7 as earning item. It removed the tax liability. I did fix via 1040X.

Thanks for your guidance.