Q. Can I include my daughter 1099-Q non-qualified distributions in my tax return?
A. No. If she is the "recipient" (her name and SS# are on the 1099-Q), then it must be reported on her tax return. At the time you requested the withdrawal (distribution), you had the option of sending the money to you (the owner) or her (the beneficiary). That was the time to make that decision.
Q. If I can, do I also have to include her summer wages of $6000 and interest bonus of $600 in my return?
A. No. If her only income was interest, there is a provision for reporting a dependent's income on your return. But since she has both wage and "investment income" (the distribution), the income must go on her return.
Q. Does she have to file at all?
A. Yes, because of the $3490 income on the 1099-Q. See full rules below the line.
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You do not report his/her income on your return. 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 2022 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022) ($13,850 2023).
- Unearned income (interest, dividends, capital gains, unemployment, taxable earnings on a 529 distribution) of more than $1150 (2022) ($1250 2023)
- Unearned income over $400 (2022) and gross income of more than $1150 (2022) ($1250 2023)
- Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
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.
In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.
If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.
