Q. Does claiming an adult dependent keep them from being able to file their own taxes even if they only made less than $2000.
A. No.
Even if he had less than the required amount to file, 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. That checks the appropriate box on form 1040.
People who can be claimed as a dependent are not allowed the full $13,850 standard deduction. Their standard deduction is the larger of $1250 or their earned income + $400. So, if his $2000 income is from working, his standard deduction will be $2400 and he will owe no tax on that income.
You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. He or she must file a tax return for 2023 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022) ($13,850 2023).
- Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1150 (2022) ($1250 2023)
- Unearned income over $400 (2022) and gross income of more than $1150 (2022) $1250 (2023)
- Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
- Gross income was at least $5 and his spouse files a separate return and itemizes deductions
