Dependents earned income from part-time jobs in 2016.

For 2016, by daughter 23, and son 25, both worked part-time jobs. They each earned over $4,050 for tax year 2016. I believe this is the threshold amount Dependents can earn in 2016. I believe that because of the amounts they each earned, I can no longer list each of them as Dependents on my 2016 tax return. I believe they are now required to file their individual tax returns in order to get back what they paid in taxes, and because of the amounts they earned. Am I correct in this?

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Is  your daughter a full time student?  When will she turn 24?

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She is a full time student. She will not turn 24 until 2017.

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She is a full time student. She will not turn 24 until 2017.

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Your daughter under 24 at end of 2016 is still a dependent if she is a student.

In any case, anyone can file a tax return to get a refund of tax withheld.

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Thank you.  You are correct. After reading publication 501, I learned that the age of 24 is one of the qualifiers for a dependent child, along with being a full time student. The only issue I would like to point out to TurboTax staff is that a pop-up instruction in the program states the age as 23, not 24.

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age of less than 24 is required. 23 is the maximum age of a dependent child.

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Under 24 means the same as 23 or younger.

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Dependents are always required to file a tax return in their own name for income they earn from working.  For a typical child dependent (under 19 or under 24 and a full time student) this does not prevent you from claiming them as a dependent.

But it kind of sounds like they have never filed before?  They have been required to file in any year their income was more than $6200 (the amount has changed slightly over time).  Not filing means that the IRS creates a substitute tax return in their computer system. which may or may not be accurate.  And the IRS usually won't send a "you forgot to file" letter if a refund is owed, because they don't mind keeping the money. (They will send a "you forgot to file" letter if they think tax is owed.)  If your kids had income over the limit in past years, they should file.