IRS rejected my return because someone else already claimed my foster child as dependent

You definitely shouldn't give up on this! The IRS has a process for handling exactly this situation. Since your e-filed return was rejected, you'll need to file a paper return by mail and include all your documentation showing your legal right to claim your foster son. When two people claim the same dependent, the IRS uses "tiebreaker rules" to determine who has the rightful claim. As the foster parent with legal custody documentation, you have a strong case. Include copies (not originals) of your foster care documentation, proof the child lived with you, and evidence you provided financial support. After filing by paper, you'll likely face a delay in processing and may receive a letter from the IRS requesting additional information. Be prepared to respond promptly with any requested documentation.

I went through something similar last year and used taxr.ai to help resolve it. My ex claimed our daughter even though she lives with me full-time, and my return was rejected. I was so stressed trying to figure out what documentation I needed and how to properly respond. I tried taxr.ai (https://taxr.ai) and uploaded my rejection notice and foster documentation, and they analyzed everything and gave me a detailed report explaining exactly what forms to file and what supporting evidence would strengthen my case. They also created a customized letter to include with my paper return that cited all the relevant tax codes. Made me feel much more confident about the whole process.

Just wanted to update that I ended up using taxr.ai after seeing the recommendation here, and wow, it actually delivered. My situation was with my sister's child who I'm the legal guardian for, and someone else had claimed him. The service analyzed my guardianship papers and identified exactly why the IRS rejected my return. They highlighted specific language in my documentation that strongly supported my case and explained how to properly reference it in my response to the IRS. They even found a similar case precedent that applied to my situation. I followed their instructions for the paper filing with all the supporting documentation they recommended, and I just got notification that my amended return was accepted! So relieved this worked out - that child tax credit made a huge difference for us this year.

After dealing with my own dependent dispute last year, I can tell you that calling the IRS directly can be a nightmare. I spent HOURS on hold and got disconnected multiple times. I was about to give up when someone told me about Claimyr (https://claimyr.com). They have this service where they wait on hold with the IRS for you and then call you when an actual agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c This was a game-changer for me because I got to speak with an actual IRS representative who looked up my case while I was on the phone and gave me specific instructions on how to resolve the dependent claim issue. Saved me so much frustration and time!

Well I owe an apology and need to eat my words. After seeing people talk about Claimyr here, I decided to give it a shot with my 2-year-old tax problem that I mentioned. I was super skeptical (as you could tell from my comment), but I was desperate. The service connected me with an IRS agent yesterday after their system waited on hold for about 3 hours! I didn't have to do anything except answer my phone when they called to connect me. The agent was able to pull up my file, and we resolved my issue in one 20-minute call. For anyone facing a dependent dispute like the original poster - definitely consider using this to speak directly with an IRS agent. They can see who claimed your dependent in their system and give you specific guidance on exactly what documentation you need to provide.

Make sure you prepare for the possibility of an audit. When we had a dependent dispute, we ended up getting audited because the IRS basically has to determine who's telling the truth. Here's what we learned: 1. Document EVERYTHING related to the child's residence and your support 2. Keep a calendar showing exactly when the child was in your home 3. Save receipts for major expenses like medical, clothing, school 4. Get statements from doctors, teachers, neighbors who can confirm the child lives with you 5. Have copies of the foster care arrangement documentation The more organized you are, the smoother the process will be if they do audit you.

One thing nobody mentioned yet - when you mail in your paper return claiming the dependent that was already claimed, it will trigger what's called a "duplicate dependent investigation" automatically. The IRS will send notices to both you and the other party who claimed the child. Don't be alarmed when you get this notice! It's just part of the process. Make sure you respond to any IRS letters within the timeframe they specify (usually 30 days).

I'm going through something very similar right now with my nephew who I've had custody of for two years. His mom claimed him even though she hasn't seen him since last spring. One thing I learned is that you should also keep detailed records of things like school enrollment forms, medical appointments, and even grocery receipts that show you're buying food for the child. The IRS wants to see proof that the child actually lived with you and that you provided more than half their support. Also, if you have any documentation from social services or the court system about the foster placement, make sure to include copies of those with your paper return. The clearer you can make it that you're the legal caregiver, the stronger your case will be when they investigate the duplicate claim. Don't let the bio parents intimidate you out of claiming what you're legally entitled to. You're doing the right thing by fighting this!