- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
taxes on interest earned from savings account for student with total income for year less than $5,000
My son(17) worked a part-time job last year and received a W-2 his earnings(box 1) was about $3,900 and Fed taxes(Box 2) withheld was about $250, no state taxes withheld. He also had interest income(1099-INT) from a saving account of about $800. His total income is well below the Fed minimum taxable income of $14,600 for 2024. I assumed since his total income was below the Fed minimum that he would be refunded all fed taxes he paid in 2024(~$250). However, it seems that TurboTax calculated and expects that $29 of taxes should be paid on his interest income and is reducing his refund from $250 to $221. Is that correct?
March 25, 2025
8:08 PM