NROTC Summer Pay

[TaxConfusion1]

My dependent son earned about $1000 during his summer cruise.  No federal tax was withheld and only a small amount was withheld for state taxes.   I claim him on my tax return as a dependent.  Therefore, do I include the wages he earned on my taxes?

[Vanessa A]

No, you do not include his income on your return since it was earned income.  Also, he does not need to file a return.  Because his income is less than the standard deduction of $13,850, this money is tax free and does not need to be reported.

One exception would be if he earned this as self-employed.  If he was self-employed, he would need to file his own return since the income would be over $400 so it would be subject to the 15.3% SE tax.