Can I claim my niece on my taxes if I'm her primary caregiver?

Would OP qualify for the Child and Dependent Care Credit too if they paid for daycare or after-school programs for the niece while working? And does the sister need to formally transfer dependent rights or something? Just curious how that works.

Yes, they could potentially qualify for the Child and Dependent Care Credit if they paid for care expenses that were necessary so they could work or look for work. This could include daycare, after-school programs, or summer camps. They'd need to have the provider's tax ID number and would file Form 2441 with their tax return. The sister doesn't need to formally "transfer" dependent rights, but it helps to have documentation. There's no official IRS form for this, but a signed statement from the sister acknowledging that OP provided most of the support for the niece would be helpful in case of an audit. Only one person can claim a dependent, so the sister should not attempt to claim the niece on her own return.

How exactly does this work? Like do you just upload your documents or what? I'm helping support my elderly parents and wondering if this would help with my situation too.

I've heard of these AI tax tools but are they actually legitimate? Like does it give you documentation that would stand up if you got audited? I'm always skeptical about these things.

You basically answer questions about your tax situation and upload relevant documents if you have them. The system analyzes everything and gives you personalized guidance. It helps identify which tax benefits you qualify for based on your specific circumstances. Yes, it's completely legitimate and designed specifically for audit protection. It creates documentation packages that satisfy IRS requirements, including support calculation worksheets that show exactly how you meet the support test for dependents. Many users have successfully used these documents during IRS inquiries. The analysis is based on actual tax law and regulations, not just generic advice. That's what made it so helpful in my complicated family situation.

Wait, this actually works? I thought it was impossible to reach the IRS by phone these days. How exactly do they get you through when the regular line always says "due to high call volume..."? Seems too good to be true.

Sounds like a scam to me. Why would I pay some random service to call the IRS when I can just call myself? They're probably just using the same public number everyone else uses.

Yes, it absolutely works! They use an advanced system that navigates the IRS phone tree and holds your place in line so you don't have to. When an agent becomes available, you get a call back and are connected directly. It's not accessing any special number - it's just automating the painful waiting process. I was skeptical too, but the reality is that the IRS only answers about 10-15% of calls during tax season. I had already tried calling multiple times myself and kept getting the "high call volume" message or would wait for an hour before being disconnected. With Claimyr, I got through in under 25 minutes without having to sit by my phone all day.

Thanks for mentioning the EIC! I make about $42,000 a year as a dental assistant, would that income level qualify me for the Earned Income Credit with two dependents? And I actually did pay for some doctor visits and prescriptions for my niece when she got strep throat this year, so I'll definitely save those receipts.

Yes, with an income of $42,000 and two qualifying dependents (your daughter and niece), you should qualify for some amount of Earned Income Credit. For 2024, the income limit for EIC with two qualifying children is around $55,000 for a single filer or head of household, so you're well within the range. Definitely keep those medical receipts! While you might not exceed the 7.5% AGI threshold for medical deductions, it's always good to track everything. Also, don't forget about any education expenses for both children - there might be credits available for those as well, like the American Opportunity Credit or Lifetime Learning Credit when they're older.

This happened to my brother and his ex-wife! Both claimed their daughter and it was a MESS. His refund was delayed for months while the IRS sorted it out. They even had to submit additional documentation to prove who provided the most support.

Exactly! And what makes it worse is that these conflicts can trigger correspondence audits which can delay refunds by months. The IRS typically sends notices to both parties asking for proof of eligibility to claim the dependent. The person who doesn't have the right to claim the dependent but filed first can cause major headaches for the rightful claimant. That's why it's so important to have that conversation early and get something in writing, even if it's just a simple signed statement that can be kept with tax records.