Tax question. My son 19 yrs is in college 2nd year. He has W2(< 800) from college helping in the lab in the campus. Also some investment I have on his name(not huge). Should I or not, include him in my tax return as dependent? I noticed, if I add him to our tax as dependent and mention the same on his return, his tax rate is our rate and charged $$ tax on the int/div on his return. I am not sure what am I going to loose if I don’t add him in our tax return. Can I even do that? He does not have income to support. I am paying his college fees and some from 529.
On his return if I choose "he is not claimed as dependent" I see his tax is $100 vs $1000. Don't know how it is calculating. I am guessing he is taxed on our rate instead of his rate for the div/int?
