What Should I Do About My Sister Wanting to Claim My Niece on Taxes?

My husband and I have been taking care of my sister’s two kids. My sister is homeless and struggling with drug addiction right now. Their father is either in jail or just got out and I haven’t heard from him. Recently, my sister asked if we would let her claim one of the girls on her taxes. I told her we would talk about it. She doesn’t give any financial help other than $300 out of the $700 in food stamps she gets each month. On weekends, we take the girls to their grandmother’s house so they can spend time with their mom. We’re not trying to keep them from her. This has been happening since the start of the pandemic. She had a job for a week and now wants to use that W-2 on her taxes. I’m not against my sister getting better, but I also don’t want to give her a “loaded gun” in this situation. There are more details, but this is the main issue. Should I let her claim the child, or am I wrong for saying no?

No way. You can’t risk jail or losing your home. Don’t let her commit tax fraud. Honestly, letting a homeless addict have access to the kids is a horrible idea. She needs to get her life together, and you have to protect the kids from this.

That’s tax fraud. If you’ve cared for them for at least 6 months, then you should be the one claiming them. Get that legal guardianship in writing. She could just take them if you don’t have that set up. You might have to report her to CPS for her addiction and lack of care. She’ll be mad, but addicts don’t make sense. It might be the wake-up call she needs.

You’re enabling her in many ways. Please stop for your own sake. You’re not helping her; you’re just fueling her addiction.

Just say no. Do you have legal guardianship? If not, contact CPS and get the process started.

I took care of my nephew in a similar situation. Make sure you have a legal agreement. Without it, she could pick them up anytime and take them wherever she wants.

I believe if you both claim the child, the person who has cared for them the longest gets the credit, or if you’ve both cared for them equally, it’s based on who has the higher AGI.

You need to go the legal route. Without legal guardianship, she could take them at any time, and you’d have no rights. If they need medical care, you’d be in trouble. She can’t share or give away her food stamps. That’s illegal.

@Kylie
That’s not true. As a parent or legal guardian, she gets food stamps for her dependents. 50% of that is probably for the kids. I’ve been a custodial parent in a similar situation, and while I didn’t get food stamps, the kids did.

How is she getting $700 in food stamps? Is she claiming the kids on her case? That’s fraud, and it could get all of you into trouble, especially if you’re taking that $300 from her. That’s illegal.

Fox said:
How is she getting $700 in food stamps? Is she claiming the kids on her case? That’s fraud, and it could get all of you into trouble, especially if you’re taking that $300 from her. That’s illegal.

This is exactly the issue. It seems like OP is doing a few things that are either against the law or dodging the law, but they only have a problem with the thing that helps the sister.

Fox said:
How is she getting $700 in food stamps? Is she claiming the kids on her case? That’s fraud, and it could get all of you into trouble, especially if you’re taking that $300 from her. That’s illegal.

Sounds like it.

If you don’t have legal custody already, you should apply for it. You should be the one claiming them on your taxes.

Catherine said:
If you don’t have legal custody already, you should apply for it. You should be the one claiming them on your taxes.

You can claim them if you’ve paid for more than half their care and they’ve lived with you for over six months.

@Logan
I hope OP sees this.

That one-week paycheck won’t give her much anyway.

Lawer said:
That one-week paycheck won’t give her much anyway.

Yeah, a few dollars on EIC, but one week out of the year isn’t enough to even file under $1k. She’s looking for a quick flip, and not in a good way.

@Lilnim
Exactly.

Just tell her NO.

I wouldn’t let her. She’ll just use it for drugs.