March 24, 2021 by Natalie Cochran
Tax Fraud and Identity Theft – Daughter Frauds Father Out of Receiving his Stimulus Check
Because Jordan was incarcerated for 10 months, he was unable to file a tax return for the 2019 tax year. As a result, when the pandemic hit in 2020, he did not receive Economic Impact Payment (EIP) or stimulus payment. He was frustrated and confused because he understood that every American was eligible as long as they made under $75,000 in 2019. He hadn’t even made enough to file a tax return, so he knew he qualified. Then he learned his daughter claimed him as a dependent without his permission, which sent him down a hole of financial distress.
Jordan and his daughter had previous conflict, which is why he felt she was taking advantage of him and lying on her tax documents. According to Jordan, his daughter claimed him as a dependent so that she could pay as little taxes as possible for the considerable amount of money she earned that year.
Jordan contacted the IRS to inform them he did not authorize his daughter to claim his as a dependent. They responded saying she must release him as a dependent. Jordan then called Lone Star Legal Aid and was informed that this is incorrect and that Jordan’s daughter had committed tax fraud.
Since Jordan didn’t notice the identity theft until 2020 due to not receiving an EIP, LSLA worked with Jordan to report the identity theft and claim his stimulus payment through the Recovery Rebate Credit on his 2020 tax return.
*Names have been changed to protect the identity of the individual(s).
