adult child earned Income

[thetamdv]

We have 2 children above 18 that have worked part time jobs. Our son is 18 and daughter is a 19yr full time student. Both have worked traditional part time jobs and each has an earned income less than $13,850 for 2023.  In addition, the ability to claim both children as a dependent is covered in divorce decrees, and they alternate yearly (this year we are claiming our 18 son).

Would I be correct that each of the children should file their own tax return, indicate they can be claimed as a dependent on someone else's return, and there is nothing additional I have to claim? IF I do need to report child's income, would this be only for the child we claim as a dependent this year?

thank you

[DoninGA]

Your dependent child's earned income is never reported on your tax return.  The child can file their own tax return and if you are claiming them as a dependent, they have to indicate on their tax return that they can be claimed as a dependent.

[xmasbaby0]

The 18 year old can still be claimed as a dependent.   He can file his own return to seek tax withheld but must say on his return that someone else can claim him.  His earnings do not go on your tax return.

We cannot be sure about the 19 year old------was the 19 year old a full-time student in 2023?  Did they earn more than $4700 in 2023?   If the older one was 19 at the end of 2023, and was NOT a student, and earned over $4700, the 19 year old cannot be claimed as anyone else's dependent. The details matter.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

[thetamdv]

Full time student and made just over $7000 for the year.

[xmasbaby0]

Full-time student?   Claim her as a dependent---and put the education credits on your tax return.

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/