Dependent or Non?

[Guenther321]

My daughter is 19 and lives at home.  She is a full time student but earned $14k in 2023.  Turbo Tax changed her status to Non-dependent.  I know she has to put her income in her own return and state that she is claimed as a dependent by her parents, but can she be changed to a dependent?

[MinhT1 · Accepted solution]

As your daughter is a full-time student under age 24, she can be claimed as your dependent if she doesn't provide more than half of her own support.

If your dependent daughter has income in 2023, you don't report your daughter's income on your tax return.

You can still claim her as a dependent if she did not provide more than half of her own support for the year and she was under 19 at the end of 2023 (or under 24 and a full-time student).

If she is 19 or older (or 24 or older and a full-time student), you cannot claim her as a dependent if she earned more than $4,700 in 2023.

If it has to be reported, at all, it goes on her own return. If your dependent daughter is under age 19 (or under 24 and a full-time student), she must file a tax return for 2023 if she had any of the following:

1. Total income (wages, salaries, taxable scholarship etc.) of more than $13,850 in 2023.
2. Unearned income (interest, dividends, capital gains) of more than $1,250.
3. Gross income (earned plus unearned) exceeding the larger of $1,250 or her earned income (up to $13,850) plus $400.
4. Other self-employment income over $400, including box 1 of a 1099-NEC

If your dependent daughter files her own return, she has to indicate in the My Info section of TurboTax that she can be claimed as a dependent by another taxpayer.

Even if she had less, she can file if she needs to get back income tax withholding. She can't get back Social Security or Medicare tax withholding.

[xmasbaby0]

If she is a full-time student you can claim her as a dependent.  Make sure you say in My Info that she was a student.   The amount she earned does not preclude you from claiming her since she was a student.

And...the education credit goes on YOUR return.  Dependents cannot get education credits.

https://ttlc.intuit.com/questions/1901172-what-are-education-tax-credits

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 (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/

[VolvoGirl]

Go back though My Info and edit her name.  You must have answered a question wrong on her. She is your dependent but not for the Child Tax Credit, just for other dependents. 

[Guenther321]

Thanks everyone for the answers!!  I did go back and saw that I accidentally put her down as living with us 6 months last year instead of all 12 months!  Got it fixed now.