Question re: teens & tax returns

[snoodledoo]

Any tax experts here? DS17 has a part-time job. If he files a tax return, can we still claim him as a dependent on our taxes? If yes, do we do anything about his income on our tax return? Thanks!

 

[kymom99]

I’m not an expert but I have a son who has earned income while being our dependent. You still claim him. And no, you don’t claim his income.

 

[StacyStrong]

You can claim your son. You do not claim his income. However, there should be a space on your son’s tax return that indicates someone else is claiming him as a dependent.

 

[snoodledoo]

Thanks for the info!!

 

[cvjw]

We have filed tax returns for our boys for years and years - thanks to the dreaded kiddie tax

You will still claim them as dependents on YOUR tax returns and report their income on THEIR tax returns.

 

[mjkacmom]

We have filed tax returns for our boys for years and years - thanks to the dreaded kiddie tax

You will still claim them as dependents on YOUR tax returns and report their income on THEIR tax returns.

DH makes the kids do their own taxes, he will help if needed.

 

[Darcy03231]

Check to see if it makes any difference in your return to claim him. We found because of our income claiming our teenagers didn't make a difference. We had them claim themselves on their returns. They got a bigger refund and it made a difference when applying for scholarships.

 

[cvjw]

DH makes the kids do their own taxes, he will help if needed.

It would be very hard to make a toddler do their own taxes - kiddie tax starts when they are born . Also, if you are subject to the kiddie tax, the calculations include information from everyone‘s tax returns. One person has to do them all.

 

[MarcIsMe]

If your joint income is less than $400K there is a $500 dependent credit. If the child heads off to college and you provide more than half of their support you still claim them up to age 23 at which time earned income limitations kick in. If the child’s income exceeds your state‘s standard deduction, a qualified preparer can easily run returns both ways and between federal and state determine which way to go. There may be some financial aid considerations in the case of well off parents where you would not claim the child when they are in college, but the schools financial aid office can assist with those calculations.

 

[Kestryl]

It would be very hard to make a toddler do their own taxes - kiddie tax starts when they are born . Also, if you are subject to the kiddie tax, the calculations include information from everyone‘s tax returns. One person has to do them all.

I thought the kiddie tax was only on “unearned” income like interest and dividends above $2200?

 

[MarcIsMe]

That is correct.

 

[cvjw]

I thought the kiddie tax was only on “unearned” income like interest and dividends above $2200?

It is. Still have to do tax returns for toddlers

 

[tinkerbelletreasure]

Usually a teenager only needs a 1040EZ form. They are really simple. I can usually fill one out in about 5 minutes. As others have said, you claim them, they can’t claim themselves. There’s also a limit of how much they have to make to be required to file. It used to be $3000, but I haven’t looked since the most recent tax changes to see if it’s changed. Below that, they don’t have to file.

 

[MarcIsMe]

The 1040EZ was eliminated after 2017. Rule of thumb is if they had income taxes withheld, they file a return. After that it depends on if they have self-employment income (a 1099Misc) over $400 or unearned income. W2 only income for a non-blind dependent can generally go up to $6,350 presuming no other income.

 

[tvguy]

Well, I guess it depends on his income but my my kids always filed for an exemption from income tax withholding. So no reason to file if their total income is less than $12,200.

 

[Anthony1971]

The 1040EZ was eliminated after 2017. Rule of thumb is if they had income taxes withheld, they file a return. After that it depends on if they have self-employment income (a 1099Misc) over $400 or unearned income. W2 only income for a non-blind dependent can generally go up to $6,350 presuming no other income.

But no one sends out a 1099MISC unless you have paid at least 600 to a person or non corporation as it is not included on the companies 1096. a 1099INT or 1099DIV aka unearned income however is for any amount 10 and over. There are many others but very unlikely to apply to a child. A person however is still expected to file the amount of any income on their tax return with the exception of a bank or stock dividend and other unearned income under 10 from one place. In other words if you have 50 bank accounts from the same bank that earn 5.00 interest on each account you will receive and have to file a 1099INT.

 

[Anthony1971]

To answer the question above there is a question that asks if someone else claimed you as a dependent on the tax return just check that box and he gets no personal deduction but will still get most of what he paid back more than likely if we are only talking about a few thousand in income.... If not I would run the tax return both ways to see which is more beneficial as depending on the income it may make a much bigger difference on his than yours. It is very easy using any number of free tax software for him... But also make sure you consider what your state return dependent deduction is as all states have different rules and amounts.

 

[MarcIsMe]

Personal allowances were also eliminated by the last major tax rewrite, the standard deduction was increased in part to offset that benefit loss.

 

[georgina]

Check to see if it makes any difference in your return to claim him. We found because of our income claiming our teenagers didn't make a difference. We had them claim themselves on their returns. They got a bigger refund and it made a difference when applying for scholarships.

Did they provide more than half of their own support through working? Otherwise they are your dependents, according to my understanding of the tax laws. The question is not DID someone claim you as a dependent, but CAN someone else legally claim you.

 

[Darcy03231]

Our accountant told us that while we were entitled to claim them, we didn't have to claim them. If we chose not to claim them they could claim themselves.