Full time Collage son has W2 income $8500

[carecars]

Hi, My 22 years old son still lives with me and we support him everything.  And has a part time job to earn $8500(W2) during 2023.  And he received form1098-T . According to this form 1098, # 1 $7200 and # 5 $11900. My questions are

1. I can claim him to our dependent

2. Plus I need to add his W2 income to us

3.Or he must do his own tax return

4. His tuition will affect to both him and us, too?

Thank you So much for helping you guys, in advance.

[xmasbaby0]

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/

The education credit goes on YOUR tax return since you will claim him as a dependent.

[Vanessa A]

1. Yes, you can claim him as a dependent since he is 22 and a Full Time student

2. You cannot add his W2 income to your return, it will be entered on his own return along with the overage for his scholarship.

4. You do not have to include his 1098-T on your return, unless you are claiming education credits, since his scholarship was more than his tuition. He does need to include it on his return. This will be taxable unearned income the kiddie tax. 

See the answer by Champ Hal Al for a detailed explanation on how to maximize your credit and minimize their scholarship income.