Can adding three legit dependents to my tax return cause an audit?

I have been helping my sister with her 3 kids since Feb. I have been paying all the bills and rent. She told me that I can claim them as she hasn’t worked at all this year. I normally only claim myself. Will the three dependents cause a tax audit?

Answer #1

No it shudnt, audits r random

Answer #2

I just read that the government can hold my refund check for as long as sixteen months is that true? UGGHHHH

Answer #3

There are random audits, but really any red flag on a tax form could lead to an audit.

Answer #4

Really, any deduction is a red flag. And while some audits are random, they’re really meant for people who are raising red flags. Claiming a lot of dependents is a very big red flag to an IRS agent. I don’t know if 3 dependents is a reason to worry, but it still could happen. In case it does, make sure you’re prepared.

Answer #5

First, make sure she isn’t claiming them. Then, “Residence — for more than half the year, the person must have the same residence as you do.” Also,” The non-qualifying parent can claim the dependent ONLY IF the qualifying parent releases his or her claim to the dependency exemption. You accomplish this by using IRS Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents (PDF document). You can indicate on this form for which year or years you agree to release the exemption. You can also revoke the release if you later change your mind.”

So you probably can, but you sure better have all your documents and expenditures in order in case of an audit. Will this cause an audit? If you have not claimed them before, hard to say, but it could be enough to flag you? That doesn’t mean you wouldn’t qualify, but audits suck.

Answer #6

She is not claiming them and her husband is not in the country and they are at mutual agreement that I claim them because they are living with me. I am worried because the taxes came back with a large refund and I have no idea what to do I have an audit … what would I show? Me paying all the bills and rent?

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