Does my child need to file a 2023 federal and/or California state tax return?

[sheila2519]

Hello!

My 17 year old made $8410 in 2023 working part time. We claim her as a dependent on our taxes. I don’t think she has to file for the federal government, but I’m not sure about California. The CA FTB is not super clear on requirements for dependents filing. Does anyone understand the Federal and California requirements for dependents filing tax returns? 
Thanks!

[xmasbaby0 · Accepted solution]

She does not "have" to file but if tax was withheld from her pay, she can file to seek a refund.

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/

[sheila2519]

Thank you for your reply! Less than a $1.00 was withheld. I tried to use the worksheet that California says to use to determine if a dependent needs to file and it appears that she does for the state but not for the federal government. Any insight into this? I’m not sure if she’ll end up owing the state at this point? 

[MonikaK1]

According to this Franchise Tax Board webpage:

If you can be claimed as a dependent, you have a different standard deduction. It cannot be more than the normal standard deduction. Your standard deduction is the larger of:

• Your earned income plus $400, or
• $1,250  for the taxable year

If your daughter has a state filing requirement for California, because her income exceeds the standard deduction for a dependent, she will also need to prepare a Federal return even if it's not otherwise required. The Federal return can be e-filed if there is any Adjusted Gross Income. 

The returns can be prepared in TurboTax.

See this TurboTax tips article for more information.

[sheila2519]

Thank you! Very helpful information! I wish CA followed the federal standard deduction. It seems crazy to file with such a small income. My husband and I use Turbo tax for our own taxes. We already purchased this year’s software. Can we file ours and then use the software for our daughter? Or do I need to buy turbo tax for her too? Thanks!