For 2019, isn't it now 12,200 for a dependent earned income not to need to file a tax return? And excess scholarships considered earned income?
That is correct. For a student that "earned income" includes excess taxable scholarship income. But you really need to consult IRS Publication 501 at https://www.irs.gov/pub/irs-pdf/p501.pdf and look at all three tables; Table 1, Table 2 and Table 3. They all matter because for a student that can be claimed as a dependent, their filing threshold is the "lower" of $12,200, or their earned income plus $350. So if a college student who qualifies to be claimed as a dpendent on their parent's return has $6000 of earned income, and $500 of excess scholarship money, they exceed the threshold by $150 and are required to file a tax return. Weather the parent actually claims them or not is irrelevant. The key word is tha they "QUALIFY" to be claimed as a dependent onthe parent's tax return.
What is the 2020 amount?
No clue.
I am getting ready to send my son off to college and he has a full ride for all costs ( including room and board), he will be my dependent, and I am wondering how much earned income he can have before he owes taxes on 2020.
I would expect $12,300 or his earned income plus $350 - whichever is lower.
For your benefit and to help you with planning tax-wise for his 5 calendar years of college towards a 4 year degree, I've attached three word documents that I hope you find informative, educational and helpful. I wrote these some time ago based on lessons learned when I put my first of two kids through college. I suggest you read the "it.docx" document first. Would be interested to know what you think after reading all of them. You'll be the first I've shared my lessons with.
