Deductions & credits

Bsch4477 · ‎January 3, 2026

If the child is still a full time student and otherwise qualified to be a dependent, the only issue is whether they provided more than half of their support . They can make a million dollars and still be a dependent if that money was not used for their support.
Their earned income has no effect on your return and is reported on their return. The betting income is also reported on their return but is subject to Kiddie tax so some of it will be taxed on their return at your tax rate.