Dependents income

Forum|Forum|4 years ago
January 26, 2022
3 replies
27 views

Our 16 year old son has his first job in 2021. He earned approximately $20K. How does his earnings and filing his own income tax impact my spouse and my (filing joint) income tax claiming him as a dependent? The child tax credit received due to Covid-related payments?

xmasbaby0

Level 15

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/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

MinhT1

Level 15

You do not report your son's income on your return.

You can claim him as a dependent and receive the Child tax credit.

If his income is wages reported on form W-2, he is not required to file a tax return if he earned less than $12,550. However, if he had taxes withheld, he can file a tax return to claim a refund.

If his income is self-employed income reported on form 1099-NEC, he is required to file a tax return if he earned more than $400.

If he files a tax return, he has to indicate in TurboTax that he can be claimed as a dependent by someone else.

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DoninGA

Level 15

His earned income has no effect on your tax return since income earned by a dependent is not entered on your tax return. You will still be eligible to receive the child tax credit for him as your dependent.

He has to file his own tax return to report the income received and Must indicate on his return that he can be claimed as a dependent.