Child's filing requirements

[yasirwadidi]

I have three kids, full-time students, ages: 18, 17, 16 they worked and made: ($906, $3013, $602) then received Form 1099 G from unemployment benefits during the pandemic ($11996, $8484, $11984)
I know I can claim them on my taxes as a dependents.
my questions are
1- do they file their taxes on their own? or do I file theirs with mine?
2- if I'm filing for them with me, where do i enter their W2 and 1099-G?

[LenaH · Accepted solution]

All of your children will have to file their own tax return. For 2020, dependents who have earned income more than $12,400, must file their own return. Furthermore, dependents who have unearned income, such as unemployment, interest, dividends or capital gains, will generally have to file their own tax return if that income is more than $1,100 for 2020. All of your children are required to file their own tax returns under these guidelines. 

[yasirwadidi]

I have filed my tax return , my oldest daughter received form 1098 T from her college, so I included it in my tax return.

Now, I‘m filling her tax return. My question is do I include form 1098 T in her return too? Or I choose “No” in the TurboTax application wizard?

[DawnC · Accepted solution]

No, if you claim her as a dependent on your tax return, the 1098-T goes on your tax return.   If you claim all three of them, make sure that you indicate that they can be claimed as dependents on another tax return when you file theirs.  Otherwise, they will get rejected if you already claimed them.  

[automazing]

Please help me understand how this makes sense.  The guidelines says the child is required to file if they have earned income more than $12,550 and no unearned income.  My child is a full-time student, born in 2000 and made approximately $3000 but TurboTax says they MUST file their own return.

Am I missing something or why can't I include my child's income with my wife and I jointly?

[MinhT1]

@automazing

You do not report your son's income on your return.

As he is a full time student, under age 24 and did not provide for more than half of his own support with his income, you can claim him as a dependent.

If his income is wages reported on form W-2, he is not required to file a tax return if he earned less than $12,550. However, if he had taxes withheld, he can file a tax return to claim a refund.

If his income is self-employed income reported on form 1099-NEC, he is required to file a tax return if he earned more than $400.

If he files a tax return, he has to indicate in TurboTax that he can be claimed as a dependent by someone else.