Hello,
I'm claiming my parent as my dependent (pass all tests). She has income of $2100 in 2023. she doesn't need to fine her own tax return since I'm claiming her as dependent. Do I include this income in the in my tax return?
Thank you.
No. You do not include your parent's income on our own tax return.
Thank you.
Interesting, feels strange when IRS would give up on taxing this my parent's income in this case.
@nocilor You never enter a dependent's income on your own tax return. That means you do not include a dependent teenager's W-2 on your own tax return nor do you include your elderly parent's income on your own return. If your mother had enough taxable income to file a return, then she could file her own return and say that she can be claimed as someone else's dependent. You say she only had $2100 of income. That is such a small amount of income that she would not owe any tax on it, so she does not need to file. Her income does not go on your tax return.
If you file a separate tax return for your parent(s) - even with them claimed as dependents on your return - the $2100 is below the filing threshold so there would be no tax on it. The IRS isn't giving anything up. It's just not enough to let them tax it.
@nocilor wrote:
Thank you.
Interesting, feels strange when IRS would give up on taxing this my parent's income in this case.
That's what the standard deduction is for. Under current tax law, the first $13,850 of income is tax-free (for single adults).