Dependent income for college kid -18yr old: she made few $100s from stocks sell, around $3,000 from PT job; does she need to file? If yes, can I include it on my return?

[Coleen3 · Accepted solution]

Probably not, but if she did you would not be able to claim her income on your return. See below for filing requirements of dependents. Pay attention to the 3b in the first category. You do not say exactly how much the "few hundred dollars" is.

[mike598]

Thank you, yes, according to 3B, she needs to file.  It's because the dividend + capital gains are $423.  Now my question is, can I put the 1098-T (college tuition payment) on my income tax, I was the one that paid for the tuition.

[Coleen3]

I'm glad I was helpful. You're welcome.

[Hal_Al]

She is still your dependent, despite her income. As such, you claim the tuition credit (put the 1098-T on your return).

[mike598]

great, thanks!

[Hal_Al]

You do not report his/her income on your return. 

She probably needs to file, see rule #3.

If it has to be reported at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2017 if he had any of the following:

1.         Total income (wages, salaries, taxable scholarship etc.) of more than $6,350 (2017).

2.         Unearned income (interest, dividends, capital gains) of more than $1050 (2017).

3.         Unearned income over $350 and gross income of more than $1050

4.         Household employee income (e.g. baby sitting, lawn mowing) over $2000 ($6350 if under age 18)

5.         Other self employment income over $400, including box 7 of a 1099-MISC

 Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

 He doesn’t get his own $4050 exemption (deduction), when he files. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.