Education

Since your child is a dependent, their filing requirements depend on their earned income and unearned income. For 2025, a dependent must file a federal tax return if:

• Their earned income exceeds $14,600.
• Their unearned income exceeds $1,300.
• Their gross income is more than the larger of $1,300 or their earned income (up to $14,150) plus $450.

Since your child's earned income is $5,665, they do not need to file a federal tax return based on income alone. However, they may want to file if they qualify for a refund or other credits.

New Jersey State Tax Return Filing

New Jersey requires a tax return if a resident's gross income exceeds $10,000 for single filers. Since your child's earned income is below this threshold, they do not need to file a NJ state tax return unless they had NJ tax withheld and want a refund.

Filing Separately as a Non-Dependent

If your child files separately as a non-dependent, you would lose the ability to claim them as a dependent, which could impact your tax situation. However, if removing them as a dependent saves you $250, it might be worth considering.

Implications of Filing Separately

• Residency Status: Your child is still considered a NJ resident since they live there when not in school. Their college attendance in NY does not automatically make them a NY resident.

State Tax Obligations:

• If they earned income in NJ, they would file a NJ tax return.
• If they earned income in NY, they may need to file a NY tax return as a nonresident.
• If they earned income in both states, they might need to file both.

Since their summer job income was $5,665, it's important to check where they worked. If it was in NJ, they would only need to file in NJ (if required). If it was in NY, they may need to file a NY nonresident return.

Let us know if this answers your question.