1) Our 16yo dependent earned $3,100 lifeguarding. Had both Federal and NY State income taxes withheld. What form(s) must we file? 2) Should he check Exempt on 2017 W-4?

[ChristinaS · Accepted solution]

File 1040EZ, ensuring that you indicate that he is being claimed as a dependent. Your state may offer a free filing option online. You'll need to specify the state if you need more information on that.

You can claim exempt for your son as long as he doesn't expect to receive $350 or more in unearned income, such as interest or dividends. Or claim 1 or 2. Usually, employers withhold next to nothing on 1 or 2 for such a small amount of income.

You can claim exemption from withholding for 2017 only if both of the following situations apply.

• For 2016 you had a right to a refund of all federal income tax withheld because you had no tax liability.