Dependent Tax

[yulichoco]

Good afternoon, 

I submitted my 2019 tax returns and added my 17yr old child, as I always have. The difference this year is my that my child had a summer paid internship and a part-time. My child earned a approx. $2,300.00 on both jobs combined. My child then received a W-2 form and our accountant recommended my child submit their own taxes, and I separately do mine with my child as my dependent. As a result, my child now has to pay the IRS approx. $200.

We did as our accountant told us to, but I'm now being told by friends that my child did not need to file taxes as that was too low to report. Is there a way to pull my child's tax return and avoid paying these $200 now? Also, my child is a full time student, now beginning college this summer, can I continue adding as my dependent without getting in trouble with the IRS? This is the last thing I want. 

I appreciate if you can answer my questions and provide some knowledge on this matter. 

Thank you. 

[JotikaT2]

It depends.

If you already submitted the return for filing, you cannot take it back.  

If you have not submitted it yet, then you do not need to do anything else.  The return has not been filed.

Your child would have a filing requirement if he/she made more than $12,200 in gross income and filing as single.

I have included some additional information to help you determine if you have any filing requirements based upon your specific filing status. 

Do I need to file a return 

Gross income amount for dependents 

As far as claiming your son as a dependent, yes, you can continue to do so as long as they meet all of the following requirements

• They aren't claimed by someone else
• They're a US citizen, resident alien, national, or Canadian or Mexican resident
• They aren't filing a joint return with a spouse
• They're under 19 or 24 years old if they are a full time student
• They live with you for over half of the year (except for temporary absences for college)
• They didn't provide more than half of their own support

Dependent qualifications

[NCperson]

@yulichoco - you did everything correctly.

for your son, did he received a 1099-MISC form?  if so,  THAT is why he had to pay tax.  It is correct.

On a W-2, the social security tax and the medicare tax is withheld from the paycheck.

But on a 1099-MISC, it doesn't occur that way.  So the IRS collects the social security tax and the medicare tax on the federal income tax return- there is no way to avoid the tax just like there is no way to avoid the SS and medicare withholdings on the W-2. 

if the tax was $200, then the 1099-MISC form should have been around $1415.  the formula is 1099-MISC times .9235 times .153 = self employment tax. 

you MUST file a tax return if any of these are true

1) income is over $12,200

2) there is federal or state withholdings on the W-2

3) you received a 1099-MISC

and if your received a 1099-MISC form then he was required to file 

Trust your accountant 🙂