The mother (custodial parent) has all of the necessary documentation to show that she was the primary supporter. Will the father be penalized?What is the penalty if the non-custodial parent and the custodial claims a child on their taxes?
When a second return is submitted with the same dependent, both returns are flagged for review. The taxpayer who was not entitled to claim the child will have to redo his/her tax return. If the taxpayer was due a refund (after the recalculation), there will not be a penalty. However, if the taxpayer will owe money, there will be a penalty for not paying the full amount of taxes due by April 15.