Claiming 18 year old working high school student

[cafaz74]

My daughter is a 18 year old high student that is working can I claim her as a dependent?  Her gross income for the year will be under $12,000.

[VolvoGirl]

Yes you still claim her if she is under 19 or a full time student under 24.   She may need need to file her own tax return to report her income.

You don't include their income on your return. It would only go on their return if they are required to file one.  They don't have to file if they only have Social Security or W2 income under 12,400 but can file to get back any withholding taken out in boxes 2 or 17.  But you don't get boxes 4 or 6 back.

To file a separate return for a dependent in the Online version you need to set up a new account separate from yours.  Online is only good for one return per account.  You can use the same email address for 5 accounts.  You can probably use the Free Edition or the Free File website

Https://ttlc.intuit.com/questions/1894512-how-do-i-start-another-return-in-turbotax-online 

Be sure on the dependent return you check the box that says you can be claimed on someone else’s return.  If their only income is W2 and under 12,400 they do not have to file a return except to get back any withholding taken out.

Filing requirements for a dependent

https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

[Hal_Al]

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student (including high school) for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $12,400), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.  TT will check that box on form 1040.

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

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You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2020 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,400 ($12,550 for 2021).
2.          Unearned income (interest, dividends, capital gains, unemployment) of more than $1100.
3.          Unearned income over $350 and gross income of more than $1100
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12,400 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

[Opus 17]

Your child will file a tax return in their own name for money earned from their own work.  If their income is less than $12,550, they aren't required to file (unless they also have investment or unemployment income more than $2200), but they might want to file to get a refund of any withholding.   You never include a child's income from working on a parent's return.

Filing a return in their own name does not, by itself, meant they can't be a dependent.  You would still consider the factors listed in the other answers.