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VSN7
Returning Member

College student claimed as dependent

Tax question. My son 19 yrs  is in college 2nd year. He has W2(< 800) from college helping in the lab in the campus.   Also some investment I have on his name(not huge). Should I or not, include him in my tax return as dependent? I noticed, if I add him to our tax as dependent and mention the same on his return, his tax rate is our rate and charged $$ tax on the int/div on his return. I am not sure what am I going to loose if I don’t add him in our tax return. Can I even do that? He does not have income to support. I am paying his college fees and some from 529. 

 

On his return if I choose "he is not claimed as dependent" I see his  tax is $100 vs $1000. Don't know how it is calculating. I am guessing he is taxed on our rate instead of his rate for the div/int?

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3 Replies
DavidD66
Expert Alumni

College student claimed as dependent

Is the unearned income (dividends) more than $2,500?  The Kiddie Tax applies if your child:

 

  • has unearned income (usually from investments) exceeding $2,500
  • is required to file a return
  • isn’t filing jointly
  • is under age 19 (or 24 if a full-time student) as of January 1, 2024

For more information on the Kiddie Tax, see the TurboTax Article:  What is the Kiddie Tax?

 

As for claiming him on your tax return:  If he qualifies as your dependent, you don't have to claim him. but he has to indicate that someone CAN claim him as a dependent.  

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VSN7
Returning Member

College student claimed as dependent

Yes. I thought kiddie tax might have applied but questions is that should have been irrespective of he is claimed as dependent or not.  His invest int/div is > 2500.  Why for the same details, if he is not a dependent checked on his return his tax is $100 where as if I mark it as he is dependent on ours his tax is $1000?

AmyC
Expert Alumni

College student claimed as dependent

When you are filing as a dependent, your standard deduction is your earned income + $400. When you are filing on your own, the standard deduction is $13,850. That is a huge difference in taxable income.

 

Children who only have earned income from a job or self-employment, don’t make enough money to be required to file, or are filing jointly with their spouses are exempt from the Kiddie Tax.

@VSN7 

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