Where do I enter dependent's W-2 income?

[bluemoon]

I'll try to keep this post not be a rant against TT...but it has gone downhill...thanks no thanks to people programming it overseas who don't have to file "US TAXES" and are not on hook for incorrect information. Just my 2 cents...now that it is out of my system....

I am using the Desktop version as quite frankly the online version is not as robust as the desktop version. My question is. I am filing as HOH (Head of Household), and entered my Dependent's info (my biological child is currently 19 and attending fulltime college). I have entered my income but nowhere has the software prompted me to enter child's W2 info? As stated previously, I have already entered my income information and now am working on Deductions....so not sure why the software has not prompted to enter or even question Dependent's income. 

Appreciate your assistance and guidance. Thank you.

[BillM223]

You do not enter your dependent's W-2 on your return. Instead, if your dependent is required to file a return, your dependent should file his or her own return.

On the other hand, even if your dependent is not required to file a return, dependents often file a return just to recover the withholding on their W-2.

[DoninGA]

A dependent's earned income from work is not entered on your tax return.

The dependent can file their own tax return and indicate on their return that they can be claimed as a dependent.

[bluemoon]

Thank you for your response. So if I understand correctly, the Dependent files their own return and indicates on their return that they are claimed as a dependent. So, in this case...is the EIC (Earned Income Credit) is on their return and not on their parent's? Seems like it (EIC) would be on theirs (Dependent's), but just checking.

The dependent does need to file taxes as it would impact their financial aid even though their income is around $4700 from part-time work, as they will need to provide a copy of their taxes as part of the determination process for Financial Aid.

[DoninGA]

@bluemoon Since they are a dependent on your tax return under the Qualifying Child rules, they are not eligible for the EIC on their tax return.

IRS website - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/who-qualifies-for-the-ea...

Claim the EITC Without a Qualifying Child

You are eligible to claim the EITC without a qualifying child if you meet all the following rules. You (and your spouse if you file a joint tax return) must:

• Meet the EITC basic qualifying rules
• Have your main home in the United States for more than half the tax year
  • The United States includes the 50 states, the District of Columbia and U.S. military bases. It does not include U.S. possessions such as Guam, the Virgin Islands or Puerto Rico
• Not be claimed as a qualifying child on anyone else's tax return
• Be at least age 25 but under age 65 (at least one spouse must meet the age rule)

[JamesG1]

It is possible to qualify for the Earned Income Tax Credit with a dependent and without a dependent.

• Low- to moderate-income workers with qualifying children may be eligible to claim the Earned Income Tax Credit (EITC) if certain qualifying rules apply to them.
• You may qualify for the Earned Income Tax Credit even if you cannot claim children on your tax return.  However, your dependent cannot qualify for the Earned Income Tax Credit and also be claimed as a qualifying child or dependent on anyone else’s tax return.  See Who Qualifies for the Earned Income Tax Credit

First, you must have earned income.  The IRS defines earned income as:

• Taxable income you earned as an employee, such as wages, salaries, commissions, and tips,
• Profits from operating your business or farm,
• Long-term disability pay if received before the minimum retirement age,
• Union strike benefits.

Here are the requirements to qualify for the Earned Income Credit:

• Have earned income; and
• Have been a U.S. citizen or resident alien for the entire tax year; and
• Have a valid Social Security number (not an ITIN) for yourself, your spouse (if filing jointly), and any qualifying children on your return; and
• Not have investment income exceeding $11,000; and
• Not be filing a Form 2555 or 2555-EZ; and
• File a return with the Single, Married Filing Jointly, Head of Household, or Qualifying Widower filing status, even if you're not required to file a return.

In addition, both your earned income and Adjusted Gross Income (AGI) may not exceed:

• $17,640 if you're not claiming a qualifying child ($24,210 if filing jointly)
• $46,560 if you're claiming 1 qualifying child ($53,120 if filing jointly)
• $52,918 if you're claiming 2 qualifying children ($59,478 if filing jointly)
• $56,838 if you're claiming 3+ qualifying children ($63,698 if filing jointly)

The tests for a qualifying child are:

• Relationship: Must be your child, adopted child, foster child, brother or sister, or a descendant of one of these (grand or nephew).
• Residence: Must have the same residence for more than half the year.
• Age: Must be under age 19 or under 24 and a full-time student for at least 5 months. They can be any age if they are totally and permanently disabled.
• Support: Must not have provided more than half of their own support during the year.
• Joint Support: The child cannot file a joint return for the year.

If you are not claiming a qualifying child:

You (and your jointly filing spouse) cannot be claimed as a qualifying child or dependent on anyone else’s return, and 

• You must be at least age 25 but under age 65 (at least one spouse must meet the age rule)

Adjusted gross income (AGI) can be found on line 11 of the 2023 IRS 1040 form.

TurboTax software will ask you simple questions and give you the tax deductions and credits for which you are eligible based upon your answers.

@bluemoon