Hal_Al
Level 15

Deductions & credits

@akkina9  said " Then ask him to put all his earnings in Roth IRA."

 

An IRA contribution is limited to $7000 per year ($8000 if over age 50).  In order to contribute the full $7000, he must have at least $7000 of earned income. So, for examples, if he only earned $5000 from part time jobs, he could only contribute $5000. If he earned $8000 from jobs, he could only contribute $7000. 

 

Q. - I thought I will not be able to claim education credit as its based on my income. If my son claims it and he has no tax liability based on ~8K income, does he get any credit? 

A. No.