As a follow up to this question, my teenager also worked as a lifeguard. In 2019, she earned less than $400. I didn't file a return for her for 2019. Was it required? If so, what are the consequences for failing to file? Can this omission be rectified?
In 2020, she earned slightly less than $4000. Based on the prior response, she clearly has to file for 2020, but can take the standard deduction to recover any income taxes paid. Regardless of any filing she makes for 2020, I gather than I can still claim her as a dependent so long as all conditions to doing so are satisfied. Is that right?
If a dependent teenager (or arguably anyone else) knows that her income (total income, AGI, other?) will be less than the standard deduction, and therefore that no income tax will be due, can she complete the W-4 to avoid withholding? If so, how is it done? Historically we have simply written EXEMPT at the bottom of the form.
