Hello,
Wonderful question....I am so glad to hear that you are claiming your college aged child. This is the best way to get your full American Opportunity credit.
As far as income for your dependent. If a dependent or any taxpayer for that matter, makes less than the standard deduction,
| Single |
$13,850. |
| Married, filing separately |
$13,850. |
| Married, filing jointly; qualified widow/er |
$27,700. |
| Head of household |
$20,800. |
then it is best to claim EXEMPT on the W4 that they fill out for any employer.
If a taxpayer works as a sole propertier and will get a 1099 NEC at the end of the year, they will need to file if their income is $400 or more.
A minor who may be claimed as a dependent has to file a return once their income exceeds their standard deduction. For tax year 2022 this is the greater of $1,150 or the amount of earned income plus $400 up to the full standard deduction of $12,950.
This this a great article on this topic: https://turbotax.intuit.com/tax-tips/family/at-what-income-does-a-minor-have-to-file-an-income-tax-r...
I suggest you click on this link or copy and paste it into a browser.
As far as the IRA contribution goes, there is not form that needs to be entered for the contribution. The IRS will treat your contributions as though they were deductible if you do nothing. He will be taxed on this income when he takes it out.
Please reply if you have futher questions.
Katie S
Katherine S 63
