‘The idea of ​​her keeping these ill-gotten funds just breaks my ass’: my 7-year-old granddaughter lives with me, but her mother received her encouragement

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Dear Quentin, My husband and I took custody of our 7-year-old granddaughter in August 2019 and finalized the adoption in 2020. We did not claim her as a dependent in 2019 because she lived with her mother for more than half of that time. year.

When the stimulus checks came in, we didn’t get any for her. His mother received money for both my grandson and another son who was also removed from her care in 2019. None of the money passed to us (of course). We claimed our granddaughter on our 2020 taxes and received the stimulus credit for her. My question is: Will your mother have to pay back the money she received for the children she did not have custody of in 2020? Should someone be informed? The idea of ​​her keeping these ill-gotten funds just rips my ass off. The Grandmother You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. Do you want to read more? Follow Quentin Fottrell on Twitter and read more of his columns here. Dear Grandma, That sounds awkward, so I’m more than happy to help. Eligibility for the first and second rounds of stimulus checks issued by former President Donald Trump in 2020 under the Cares Act of 2020 was based on Americans’ 2019 tax returns or their 2018 tax returns, if your returns 2019 tax files had not yet been filed. The second batch issued by President Joe Biden under the 2021 American Rescue Plan was based on 2020 tax returns from Americans. They are tax credits, not a loan, and as such do not have to be repaid. Since you didn’t claim your granddaughter as a dependent last year, the Internal Revenue Service is unlikely to require your daughter to pay you back. It all depends on the timeline, of course. I cannot discuss the situation with the other child. If your daughter claimed your grandchild as a dependent for the third stimulus payment, when you are her legal guardian and claimed her on your tax return, the IRS will get it back.

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“Claiming false deductions is tax evasion and is considered a felony. Your daughter files her taxes under penalty of perjury. ”

Claiming false deductions is tax evasion and is considered a felony. Your daughter, like everyone else, files her taxes under penalty of perjury. “However, the IRS will only consider alleging malicious dependent fraud if the taxpayer has proven willful. Without intent, the crime is considered negligence. There are still penalties for negligence; it is your responsibility to know the rules, but it is not a crime, ”according to Communitytax.com. If you think your daughter claimed money that was not hers to claim in 2020? You can complete a refund tracking or Form 3911 and / or choose a taxpayer advocacy service that has remote workers in law schools working to help people in situations like this, and legal aid. If you hadn’t become your granddaughter’s legal guardian until last year, it can be a tough case. You need to weigh the hassle of pursuing this against your happiness and that of your granddaughter. Ultimately, she is the mother of his granddaughter, so causing her more trouble, whether she deserves it or not, can only end up hurting her family. Hello MarketWatchers. Check out Moneyist’s private Facebook group, where we search for answers to life’s thorniest money problems. Readers write to me with all kinds of dilemmas. Post your questions, tell me what you want to know more about, or comment on the latest Moneyist columns. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, on all media and platforms, including third parties.