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If you claim your 18 year old----and you can---he cannot claim himself. He must say on his own tax return that someone else can claim him as a dependent. At 18, he can still be claimed as a qualified child dependent.
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/
The Other Dependent credit of $500 on your tax return has no effect on your dependent's tax return. Just make sure that he indicates on his tax return that he is being claimed as a dependent.
What you get for claiming your 18 year old is the credit for other dependents.
Q. My son is now 18 and had a job for half of 2023 and plans on filling his own taxes for a refund. If I claim the 500$ additional child tax credit - can he still file?
A. Yes. He simply checks the box, on form 1040, that he can be claimed as a dependent. The TurboTax interview will handle that.
Q. If I accept the 500$ additional child tax credit will he still be able to claim himself?
A. No. But "claiming himself" is now meaningless. With the tax law change, effective 2018, most dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased.
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 $13,850), 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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