Dependent Sports Betting

[gabsev]

I have a child that is a full time student that I usually claim as a dependent on my taxes. This year they were employed and made over $10,000 this year. They also got into sports betting and made over $10,000 doing that too. Would they still be considered a dependent and am I able to claim them on my taxes? Would the money that they made working and sports betting affect my taxes and increase my return? Or would they have to file as an independent? Also if they didn’t tell me about the sports betting would it show up when I would try and file them as a dependent. This is in NJ. 

[Bsch4477 · Accepted solution]

• If the child is still a full time student and otherwise qualified to be a dependent, the only issue is whether they provided more than half of their support . They can make a million dollars and still be a dependent if that money was not used for their support.
  Their earned income has no effect on your return and is reported on their return. The betting income is also reported on their return but is subject to Kiddie tax so some of it will be taxed on their return at your tax rate. 

[Mike9241]

also the child has to be under 24 on 12/31/2025