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

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

Yes! She doesn’t pay or claim; period. She didn’t earn enough for a deduction, and she’s just trying to get a big refund from the tax credits. That’s taxpayer money, and I don’t want to fund her addiction. But you should get any credits you deserve for caring for those kids. Don’t enable her, and take your deduction for them. You deserve it a thousand times over. And thank you for stepping up to take care of them. We need more people like you.

@Douglas
You’re focusing on “taxpayer money” but missing the food stamp fraud OP is part of.

@Douglas
Wouldn’t be surprised if she’s selling the leftover $400 of food stamps too. She must have included the kids to get that $700 a month. So much fraud…

Just tell her no. She’s trying to get you to help fund her habits. She won’t change until she’s ready.

Has she tried getting help for her addiction? If so, I would claim both kids, and tell her that you’ll send her one of the credits to help her get back on her feet, but not directly. If she hasn’t, then she’s out of luck.

@Happy
No, she hasn’t. The last time she left, she called me crying because she didn’t have any hygiene products. I took her to Target and bought her everything she asked for. She said she’d go back the next day, but when I showed up to bring her, she changed her mind.

@Firth
Give her an ultimatum. If she completes a program and proves she’s trying to make a change after it’s over (like attending outpatient appointments, staying clean, etc.), you’ll send her the credit to help her get on her feet. If she doesn’t, she won’t get it. Hopefully, she’ll enter the program with the wrong mindset, but by the time she’s done, she’ll have the right one and actually change her life.

From a tax perspective, I think if they’ve lived with you the whole year and you’ve supported them more than half, you should get the tax break. It makes sense to say no to your sister if you’re the one primarily supporting the kids.

@Adriana
The law is for parents. When non-parents are involved, it gets tricky. If the IRS sees two returns with the same dependents and one is a non-parent, they default to the parent. OP would need to prove legal custody. If OP has legal custody, like a guardianship agreement or court order, they’ll be fine. But if it’s just an informal agreement, the mother still has the right to claim the kids.

@Adriana
We’ve bought all their furniture, clothes, shoes, school supplies, food, toiletries, and more. They’re on our phone plan, and I’m the emergency contact. Their mom only has them on weekends and during school breaks.

@Firth
You need to apply for guardianship. Do it right for the sake of both you and the kids.

@Firth
Do you have legal guardianship?

@Firth
Has this been approved by a judge? Has guardianship been formally written by the family court? Not that you don’t have responsibility, but legal guardianship is different.

@Firth
She could come and take them at any moment, and you wouldn’t be able to stop her. Without a court order, she still has rights. You need to talk to an attorney about guardianship or third-party custody in your state to protect the kids. Court orders will give you the right to claim them on taxes as well.