1095B and minor tax questions

[Helen123]

Hi guys,

I have a few questions and hope to get help. Based on the number of days in the US, I need to pay the tax as NRA for 2024 and I think I will be RA for 2025. My baby has the US citizenship. I will do tax married filling separatedly to avoid my parther to fill in tax outside of US.

1. My old insurance company sent me the old 1095B with my previous address. I called them and it seems very difficult to modify it by themselves. Is this a big issue? Do I have to correct the address to my current address? Both address are in the same state. I think there shouldnt be any tax difference.

2. Because I am NRA this year and my kid most of time lives with my parnter outside of USA, I think I cannot claim any benefit from my kid. Do I need to add my kid's info into my 1040NR because she is US citizen?

3. Because my kid has 0 income and I think I dont need to report any tax for her (if I am wrong, please correct me) If in the future, she starts earning some interests or has some part time job. Based on our current situation, can we report the tax together or we need to fill in 2 tax forms separatedly?  

4. I checked minor's tax threshould, which is slight different from the adult. If my daughter earns 100 dollar interests/divident in the future or earning 8000 dollar for job per year, should I assume that she doesnt need to fill in the tax form and I dont need to add her income into my tax return as well?

Thanks for the help.

J

[DaveF1006]

It depends. Let's answer each question individually.

1. It doesn't matter what address is listed on the 1095 B.  This form does not get  reported in Turbo Tax. 1095-B is strictly an informational form for you.
2. Yes, you would not be able to claim your child as as a dependent. You do not need to include them on your return even if they were a US citizen.
3. You can file one return, which includes your child's income, or you can file two separate returns, if your child earns more than $14,600 in earned income or more than $1300 in unearned income such as interest. 
4. If your child has income and if the income is less than the parameters described above, they will not need to report their income, either on their return or your return. They should file their own return if there is withholding tax paid by them on their income and they wish some or all of it refunded. 
5. If they file their own return, they would indicate on the return that they are a dependent of another taxpayer.

What income threshold levels does a child need to file a return

[Helen123]

many thanks, David @DaveF1006 

That is super helpful.

For question 1, I assume it means I only add my kid info when I claim her as the dependent for tax benefit, right?

For the question 3, so, only if my child earns more than $14,600 in earned income or more than $1300 in unearned income such as interest, I need to help file the return for her either on my return or file two separate return, right?

For question 5, if I cannot claim her as depent for tax benefit as answered in 2 and my partner doesnt have SSN and doesnt live in the USA, can my kid claim me as the parent of dependent?  or any advice?

6, if I file the return as married filling separatedly and my kid's income is above the income mentioned above, I can  still put my kid's income into my return , right?

7. If I become RA and my kid doesnt live with me for 6 months, can I claim her as the depedent for tax benefit?

[DaveF1006]

Yes, for question 1, add your child when you can claim her as a dependent. Also if your child makes more than the thresholds given, she can file her own return or you can file her taxes on your return. 

You cannot claim your child as a dependent if the dependency tests are not met. These are the dependency tests. 

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a US citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
  • There's no age limit for permanently and totally disabled children.
• They lived with you for more than half the year 
• They didn't provide more than half of their own support for the year.

If you file married filing Separately, you may choose to include your child's income in your return if you can claim her as a dependent. Remember, to claim the child as your qualifying child, they need to have lived with you more than 1/2 of the year. Exactly six months would not qualify, but more than six months would qualify for your child to be your dependent. 

@Helen123 

[DaveF1006]

Yes, to both questions.  The only exception to filing if the income tax was withheld by her employer, she may wish to file return to see if the tax can be refunded to her.

@Helen123 

[Helen123]

many thanks