Q. I didn't file a return for her for 2019. Was it required?
A. No. See filing rules below.
Q. In 2020, she earned slightly less than $4000. Does she have to file for 2020?
A. No. See filing rules below. But, she is allowed to file if she needs to get back income tax withholding. She cannot get back social security or Medicare tax withholding.
Q. 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?
A. Yes. In TurboTax, she indicates that somebody else can claim her as a dependent, at the personal information section.
Q. 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?
A. Yes. Continue to choose exempt on the W-4. The rule is: your are exempt if you had no tax liability in 2020 and expect to have none in 2021.
You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2020 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,400 (2020).
- Unearned income (interest, dividends, capital gains, unemployment) of more than $1100.
- Unearned income over $350 and gross income of more than $1100
- Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12,400 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.
In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.
