Can I claim my child as dependent?

[tilhailu]

I have a 22 years old full time college student daughter, who lived with us full time in 2024. She worked part time while in school and have w-2 with $8,200 earned income. I am married filing jointly. She also recieved 1098-T. 

1) Can I claim her as dependent? If so, do I need to report her w-2 ($8,200) as an income with our income (my W-2 + my wife W-2 + my daughter W-2)?

[xmasbaby0 · Accepted solution]

You can still claim your daughter who was a full-time student as a qualified child dependent.  You do not put her income on your own tax return.   You are the ones who can claim any education credits like the AOTC.

MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages from boxes 2 or 17 (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.

You might also want to use free software from the IRS Free File versions:

https://apps.irs.gov/app/freeFile/

[Vanessa A · Accepted solution]

Yes.  You can claim her as a dependent on your return.

The following criteria must be met to claim someone as a qualifying child:

• Your child (including adopted and foster children), your sibling, or a descendent of any of them.
• Age 18 or younger at the end of the tax year OR under 24 (and younger than you and your spouse) if they are a full-time student
• Lived with you for more than 6 months during the tax year
• They did not provide more than half of their own support (social security does not count)
• They did not file a joint return, unless it was to claim a refund
• Have a social security number that is valid for employment

No.  You do not report her income on your return.  Since her income was only $8,200 from a W-2, she does not need to file a return unless she is claiming a refund.  If she is not claiming a refund, then this income does not need to be reported on any return.

[tilhailu]

Thank you for your quick response. 

So, if we claim her as dependent & she is not looking for any refund - she can totaly ignor her w-2 (no need to file her own seperate tax)?

[xmasbaby0 · Accepted solution]

She is not required to file a return for the amount of income she received.  If any tax was withheld ---shown in box 2 or box 17 of her W-2---she can file to seek a refund.   If she can get a refund, there would be no good reason not to file to seek the refund.

[VolvoGirl · Accepted solution]

Not unless there is any withholding in box 2 or 17 she wants to get back.

[tilhailu]

Good Morning,

On your previous below response you said "You are the ones who can claim any education credits like the AOTC." 

My daughter recieved both 1098-T and 1098-E for year 2024 tax season.

We will include her with our tax return as our dependent AND she will file her own return for a refund, since her W-2  (boxes 2 and 17) shows her withheld wages.

My question is: Who's tax return shall include her 1098-T and 1098-E forms information? In other words, parents or my daughter. 

Thank you for all your help!

[DaveF1006]

If your child is your dependent, you will report these on your return, if you paid for her educational expenses. You can report either the 1098-T or 1098-E, but not both. The 1098-T may give you the best benefit because of the educational credit involved.

[tilhailu]

Thank you for your quick response.

Ok, we will include ONLY her 1098-T with our tax return, However can she include her 1098 -E with her tax return, since she is the one who paid her own student loan (total close to $2080, with box 1 of her 1098-E shows $760 loan interest)

[xmasbaby0]

Dependents cannot get education credits.  She will not get anything for entering student loan interest if she is a dependent.  If you co-signed for the student loan, you can enter the interest.