Dependent

[Chor2meiyun2sabrina]

Hello ,

 I would like to ask about my daughter ( 20 years old ) who attend the college full times but she was working during this summer with total income about $8000 and I am retired with the total income of $34080 ( my wife working part time with the total income of $10000 ) .

I claim her as my dependent ,  please advise if she need to file her own income tax return this year or add her income to my income ?

Thank you

Bear regarding 

Chor

[VolvoGirl]

If they are under 19 or under 24 and a full time student you can still claim them.   

You don't include their income on your return. It would only go on their return if they are required to file one.  They don't have to file if they only have Social Security or W2 income under 12,950 but can file to get back any withholding taken out in boxes 2 or 17.  But you don't get boxes 4 or 6 back.   If they got a 1099NEC or no form (like for cash) for it they do have to file a tax return for it no matter how small.

To file a separate return for a dependent in the Online version you need to set up a new account separate from yours.  Online is only good for one return per account.  You can use the same email address for 5 accounts.  You can probably use the Free Edition

Https://ttlc.intuit.com/questions/1894512-how-do-i-start-another-return-in-turbotax-online 

Be sure on the dependent return you check the box that says you can be claimed on someone else’s return.  If their only income is W2 and under 12,550 they do not have to file a return except to get back any withholding taken out.

Filing requirements for a dependent

https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

[xmasbaby0]

Your daughter can be claimed as a dependent on your tax return since she is a full-time student under the age of 24.   But she can also file her own tax return in order to seek a refund of federal and state tax that was withheld from her pay.  She will not get back the amount withheld for Social Security or Medicare.   She must say on her own return that she can be claimed as someone else's dependent.    You do NOT enter your child's income on your own tax return.

If you claim her as your dependent then you can get the education credits such as American Opportunity Credit.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2022 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. 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).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,400 in 20222.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

[TaxandtheCurious]

I will address the various questions you posed. In terms of claiming your college student daughter's income on your tax returns, you should not claim their earned income on your return. If your student files their own tax return, you can still possibly claim her as a dependent, but you shouldn't claim her income on your return, regardless.

Generally, a parent can claim their college student children as dependents on their tax returns. However, to claim a college student as a dependent on your taxes, the Internal Revenue Service has determined that the qualifying child or qualifying relative must:

• Be younger than the taxpayer (or spouse if MFJ) and:
  • Be under age 19,
  • Under age 24 and a full-time student for at least five months of the year.
• Or the child can be any age if totally and permanently disabled.
• Have lived with you for more than half the tax year. There are exceptions for temporary absences during the tax year, such as when your child is away at school. For example, if the child went away to college and planned to return home, then that temporary absence while away at college, can count as if they lived with you.
• Not provide more than half of their own support. (You provided more than half their support). Here are some guidelines:
  • Support includes expenses like:
    • Food
    • Clothing
    • Lodging
    • Dental or medical expenses (out of pocket)
    • Education
  • College student loans count as support by the person responsible for the loan repayment. Nontaxable scholarships don’t count as a dependency exemption here. Some taxpayers ask us if they can claim a dependency exemption (in tax terms: a dependent exemption). The availability of a dependent exemption is no longer available after 2017 tax reform.
  • As long as your child didn’t pay more than half of all these expenses, you meet the support test. 

If you claim your daughter, she will need to file a tax return to claim a refund for any withholdings. Also, she will want to be sure that she indicates on her tax returns that someone else can claim her. 

[SuziM]

Thanks for your participation in our Ask the Expert event regarding "How does the Child Tax Credit and Dependent Care Credit impact this year's tax return for you?"! We’d love to get your input on the event and your TurboTax experience: Click here to leave a video testimonial.

[Hal_Al]

Q. Please advise if she needs to file her own income tax return ?

A.  No. Her income is low enough that she is not required to file a tax return. 

Q. Or do I add her income to my income?

A.  No. That is (almost) never done.  See below for minor exception. 

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2021 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021) or $12,950 (2022).
2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1100 ($1150 for 2022)
3.          Unearned income over $350 ($400 for 2022) and gross income of more than $1100 ($1150 for 2022)
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

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.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.

If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.