Does my daughter have to file her tax if her income is less than $10000? How shall I file tax as MJF and claim her as dependent?

[Opus 17]

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@danilol wrote:

I am a little confused.

My daughter W2 income is $7175, there are both federal and state withheld. We claimed her as dependent.

Does she have to file her tax seperatly even she choose to give up taking back withheld?

she is 21 and full time student.

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1. A person always files their own tax return to claim income earned from working.  The only time that a child's income can be added to a parent's tax return is if the child's income is only from investments and less than a certain dollar amount. 

2. A child earning money and filing a return does not necessarily interfere with the ability of a parent to claim them as a dependent, as already covered.  But, the child must answer "yes, I can be claimed as a dependent by someone else" on their tax return.  This will affect their eligibility for certain tax benefits including EIC and some education credits.  (The education credits should be claimed by the parents if the parents claim the child as a dependent.)

3. The income threshold to be required to file a tax return for dependents is complicated.  If her only income is earned from working, the threshold is $12,550.  If she also has unearned income (such as certain scholarships, prizes, investment income, gambling winnings, unemployment compensation), the filing threshold may be lower.  You can use the IRS web site to determine if she is required to file. 

https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

4. Your daughter must file a tax return if she wants a refund of her tax withholding.  The IRS will pay the refund as long as the tax return is filed less than 3 years from the usual deadline.  She may file a return and claim a refund even if she is not required to file. 

5. The income requirement to file a state tax return may be different than the requirement to file a federal return.  You may want to check with your state.  She must file a state tax return to claim a refund of the state tax withheld from her paycheck.  

[Opus 17]

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@danilol wrote:

Any difference between 1.total income(  wages, salaries, taxable scholarship etc.) of more than $12,550 

                           and 3. gross income of more than $1100?

what does  gross income refer to here? is it wages salaries, taxable scholarship?

Thanks

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Gross income is all income from all sources.

Earned income is compensation for working, for providing a service.

Unearned income is everything else (prizes, scholarships in excess of expenses, gambling, unemployment compensation, bank interest and investments, money found in the street, and so on.)

A person who is a dependent, and who has unearned income, may have a lower filing threshold.  This is part of the "kiddie tax" which is intended to prevent parents from putting investments in a child's name to pay less tax.  It can sometimes also affect taxable scholarships. 

The easiest way to determine what her filing requirement is, is to use the IRS web site here.

https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

[danilol]

I want to make sure I understand correctly for the statement

"Your gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,200) plus $350"

That means  when think of gross income( earned plus unearned), if the amount  exceeds the larger one between $1100 and  $12550, then we will pick $12550( because 12550 >1100) as reference number. If the gross income over $12550, then required to file a tax, otherwise as a dependent ( 21 years old , full time student, only has a earned income from w2 of $7175) not required to file a tax. Is that correct?

Do I need to file my own taxes if I'm a dependent?

SOLVED•by TurboTax•5875•Updated December 20, 2021

Even if you're a dependent, you'll generally need to file your own 2021 tax return if:

• Your earned income (money you made by working) exceeds $12,550
• Your unearned income (interest, dividends, capital gains, etc.) exceeds $1,100
• Your business or self-employment net income (gross minus expenses) is at least $400
• Your gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,200) plus $350

[NCperson]

@danilol - this is really getting complicated.... and it's really easy..

your daughter has federal and state taxes withhold from her paychecks

The way to get the money back is to file a tax return...if she doesn't want the money the IRS is happy to keep it 🙂

ps when filing the tax return, Turbo Tax (or any other DIY program) will figure out the standard deduction and if any tax is owed.  

[VolvoGirl]

@danilol   RIGHT.  She does not have to file a return.  But she can to get back the federal withholding in W2 box 2 and maybe the state withholding in box  17.  She won't owe any tax so she can get back the tax withholding taken out.  How much did they take out in box 2?  If it is a small amount I would just give it to her from you and not file.  But it would be a good practice for her to file and see how it works.  

[Hal_Al]

Q. My daughter W2 income is $7175, there are both federal and state withheld. We claimed her as dependent.

Does she have to file a tax return,  even she chooses to give up getting back withholding?

A. No.  Since her only income is wages of less than $12,550, she is not required to file. 

But, you complicate the issue by asking "Does she have to file her tax separately?" Filing her income on your return is NOT an option. She either files her own return or no return. 

Note that "Your gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,200) plus $350" is just a more complicated way of saying you must file if " You have unearned income over $350 and gross income of more than $1100". 

[VolvoGirl]

For 2021?  And you messaged me about 2019?  Have her do it by hand.  Did she have income and withholding in 2019?  What about 2020?

She can fill out the forms by hand.  Here are some basic forms.....

Here is the 2019 1040 return

https://www.irs.gov/pub/irs-prior/f1040--2019.pdf

or if you want bigger type use 1040SR for Seniors,

https://www.irs.gov/pub/irs-prior/f1040s--2019.pdf

2019 Instructions https://www.irs.gov/pub/irs-prior/i1040gi--2019.pdf

2019 EIC and Tax Tables https://www.irs.gov/pub/irs-prior/i1040tt--2019.pdf

2019 Schedules 1-3

https://www.irs.gov/pub/irs-prior/f1040s1--2019.pdf

https://www.irs.gov/pub/irs-prior/f1040s2--2019.pdf

https://www.irs.gov/pub/irs-prior/f1040s3--2019.pdf

Don’t forget your state.  And you will have to print and mail your returns.  So be sure to attach copies of your W2s and any 1099s that have withholding on them.  You have to mail federal and state in separate envelopes because they go to different places.  Get a tracking number from the post office when you mail them for proof of filing.

She can do 2021 online for free.  

[Hal_Al]

@danilol 

Q. If only wage income from w2(earned income), and no unearned income at all , then the amount should be $12550( year 2021). less than this amount, no need to file tax, is that correct?

A. Correct.

Q. What is the earned income amount for year 2019? Actually it is tax in 2019.

A.  $12,200.   It's adjusted for inflation each year. 

Q. The key point is when gross income( earned plus unearned)  over $1100, if this $1100 includes unearned income over $350 then need to file tax,  is that correct?

A.  Correct.

[xmasbaby0]

@danilol 

As I recently replied to you in a private message, it is time for you to provide ALL of the relevant information regarding your situation here in the user forum if you want reliable help, instead of changing the situation and/or dribbling out bits of information.   Now you have disclosed to me that the reason you are worried about whether your daughter should file a 2019 tax return  (you changed the year in which she received a W-2)   is that she is not a U.S. citizen and is being asked on citizenship application forms whether she has ever filed a tax return or whether she was required to file a tax return.   If there is still anything else relevant to the situation, please include it here.   We cannot give reliable answers to you without all the relevant information.

@Hal_Al @VolvoGirl @Opus 17 @NCperson 

[Opus 17]

@danilol 

I also received a private message but it did not indicate the child was a non-citizen.

It is important to determine her status.  If she is a resident alien (passed the substantial presence test or has a green card) then her standard deduction is the same as a US citizen.  However, if she was a non-resident alien, she does not get a standard deduction, and may have been required to file a return for the $7K wages.  A non-resident alien is someone who is in the US less than 183 days, or certain students on F- or J- visas, even if they are in the US for the full year.

[danilol]

This is the reply to all person who answered my questions before. @Opus 17 @xmasbaby0 @Hal_Al @VolvoGirl @NCperson 

First thank you very much for all your help.

Second I do not know some information are need to be taken into consideration. I will only know it at the time after I post a question then find so many detailed answer poured in. Then I realized there are some information are important for your guys to give out answer. Then I will give the information.

The year is my mistake I typed wrong . I appologize for that.

The reason why I use private message is I just get to know how to use that and I think it can allow me ask questions with people whose answer confused me or ask further questions while still keep privacy. 

My daughter, a dependent, a green card holder, 21 yearsold, full time student in 2019, only w2 income of $7175, according to all your advise that she does not required to file a tax.  Am I correct?

I do not know what else I should give out.

I do not know too much about tax. 

Any misunderstanding caused your guys upset, I appologize for that.

[xmasbaby0]

@danilol We are not upset.   As you can see, you have a group of people who are all trying to help you and we are glad to help. That is what we are here to do.    We do need all the information to give effective help, though.    It now seems like you were not asking about having your daughter file a tax return in order for her to receive a tax refund.   It seems you are hoping that she was not required to file a 2019 return because you have concerns about how to answer questions on her citizenship application. 

   And.....since you are asking about a 2019 return, you are not asking about a child who is 21----it goes by her age at the end of 2019.   So for a 2019 tax return her age at the end of 2019 is the age that matters.    

I do think it best going forward for you to stick within this thread with your information and questions so that we all have the pertinent information in order to help you.  

So that we all know----has she worked since 2019?   Did she receive any income for 2020 or 2021?   Did she receive a W-2 for 2020 or 2021?

[danilol]

She had no job and no income in 2020 and 2021, so no need to file tax.

She had summer job in 2019. The reason why she did not file her own tax is I thought if my husband and I claim her as dependent, then she can not file her own tax which is misunderstanding of mine after your guys gave your answers. And I asked turbotax  does my daughter have to file her tax of that year? Their answer is same as yours.

She had summer job in 2018. We did not claim her as dependent and she filed her tax. There is no issue. ( Do not upset why I give this information now, because there is no issue about that year, so I did not ask. And when you ask 2020 and 2021, I start to think how about 2018.)

Yes, I am more concern about how to answer the question on citizenship application" Have you failed to file a federal income tax return?"

"Failed "here means that you should to do it but you did not do it.

So If she is not required to do that, then I should not worry.

[Opus 17]

@danilol 

If your child was a green card holder in 2019, and only had wage income, then she was not required to file a return.  You can answer "no" to the question "have you failed to file a required tax return."

She has the option of filing a return and should get a full refund of any federal withholding, and a partial or full refund of state withholding.  For a 2019 tax return, the filing deadline to claim a refund is July 15, 2023 (the state deadline may expire April 15, 2023, depending on what state she lived in.)

[danilol]

Thank you.

To file that tax I think I can buy the 2019 version of turbotax software and do it and print out the report, then mail it to federal and state seperatly.

Although users sent me the link of 2019 form before, but I like to do it on turbotax software.

Can I do so?