Q. Or does being a full-time student, under 24, in 2023 overwrites the $13850 limit!?
A. Simple answer: Yes.
Q. It means even though my son was a full-time student in 2023, he is not supposed to have earning more than S13850 in order that I can claim as HOH and him, as my dependent? In other words, he needs to have these both criteria, so I can claim him as Dependent/HOH?
A. No, that's just not a true statement for either dependency or HOH.
For HOH, it only matters that you have a closely related dependent that lives with you in a home that you provide (pay more than half the cost).
There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, relationship test and residence test. The income limit for a Qualifying Relative is only $4700. The $13,850 has nothing to do with dependency or HOH, it's only a filing requirement for regular people. A dependent's filing requirement is more complicated. See below the line if you interested in the details.
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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. A sependent must file a tax return for 2023 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $13,850 (2023).
- Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1250 (2023)
- Unearned income over $400 and gross income of more than $1250 (2023)
- Household employee income (e.g. baby sitting, lawn mowing) over $2600 ($13,850 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
- Gross income was at least $5 and his spouse files a separate return and itemizes deductions
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.
