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Level 1
posted May 13, 2021 9:06:11 AM

Does dependent have to file?

I claimed my 17 year old full time student. Does he have to now file taxes? He had approx 4800 in wages and $10,900 in Maryland unemployment. I asked this earlier and was told yes BUT .... When I filled out the forms to file, his AGI is only like $5330 which is is UNDER the $6300 requirement of having to file in 2020. So does he really have to file since his AGI is lower?

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2 Replies
Expert Alumni
May 13, 2021 9:26:07 AM

The change in unemployment law certainly helped him.  The best way to answer is that if there is $0 in tax, he technically does not need to file.  However, if he is entitled to a refund he will certainly want to file to get that money back.  And given the situation with the unemployment exclusion, it might not be a bad idea to go ahead and file anyways and eliminate any possibility of confusion by the IRS or Maryland.  

 

So for this year I would recommend he file even if not technically required to do so.

Level 15
May 13, 2021 10:21:36 AM

the issue as to whether he has to file revolves around the UC he received.  It is unearned income,  the rules say a dependent has to file if unearned income is over $1,100. the rule does not explain whether you look to gross UC or taxable UC. 

 

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