Ho do I add my childs income? I don't see an option to add.

[xmasbaby0 · Accepted solution]

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 may want to use this version of TT for that:

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

[ErnieS0 · Accepted solution]

You can report your child’s UNEARNED income on your tax return by filing Form 8814, Parent's Election to Report Child's Interest and Dividends.

• To get to Form 8814 in TurboTax, type Form 8814 in Search. Hit enter. Click on Jump to form 8814.

Use Form 8814 if all you child’s only income was from interest and dividends, including capital gain distribution and Alaska Permanent Fund dividends.

If you elect not to report your child's income on your return, or you don't qualify to use Form 8814, the child must file their own return. In addition, your child may be required to file Form 8615, "Tax for Certain Children Who Have Unearned Income" as part of their income tax return.

Your child will file a return if:

• They had only unearned income (interest, dividends, capital gains) of more than $1,100;
• They had only earned income (wages, salaries, tips, fees) of more than $12,400; or
• They were self-employed with $400 or more income.

In cases of mixed income (earned and unearned), file a return if:

• Unearned income was more than $350, and gross income of more than $1,100, or
• Unearned income was $350 or less, and gross income of more than $12,400

If your child is age 18 or younger, or a full time student age 19 - 23, and required to file a return, you may be able to report their income on your return using Form 8814, "Parents' Election to Report Child's Interest and Dividends." If you report their income on your return, the child is not required to file their own return.

[Anonymous]

Hello, my child (21yrs college student) lives with my family and in 2021 had bank interests of ~$200 and gross earned income of more than $15,000.  Can she be included as a dependent of my joint return with my wife? I tried on Turbotax (in Child's income under "Less Common Income) and found "Your child's income does not qualify to be included on your tax return".  Any thoughts you may have are greatly appreciated. 

[DoninGA]

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@Anonymous wrote:

Hello, my child (21yrs college student) lives with my family and in 2021 had bank interests of ~$200 and gross earned income of more than $15,000.  Can she be included as a dependent of my joint return with my wife? I tried on Turbotax (in Child's income under "Less Common Income) and found "Your child's income does not qualify to be included on your tax return".  Any thoughts you may have are greatly appreciated. 

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She can be a dependent if she is under the age of 24 and a full time student and meets all the requirements under the Qualifying Child rules.

You do not enter her earned income on your tax return.  She files her own tax return and indicates on her return that she can be claimed as a dependent.

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you unless disabled.

[Anonymous]

Dear DoninGA, Thank you so much for your quick and kind reply. Really super appreciative of all your info. Yes, my child meets all those requirements. But actually, she just graduated from college 2021 and worked as a full-time employee for the last 3 months of 2021 (teleworking from my house).  Do you think she still can be claimed as my dependent but must fill her own return separately? Thank you. 

[MayaD]

Yes, if she meets all the requirement that DoninGA mentioned, you can claim her as a dependent and she will file her own return. On her return she needs to check the box that she didn't pay for more than half of her own expenses and that someone will claim her as a dependent. 

[Saigon-Services]

I have 17 years old child and she has a 1099-NEC for $6,600 and I supported all of his living expenses.  Does he need to file his 2021 tax returns if I claim him to my 2021 tax returns?  Or If I need to add his income to my tax returns, how can I add my 1099-NEC self-employed income to my (the parent's) tax returns?  Your advise is greatly appreciated.

[AamilD]

Yes, if your child meets requirement that DoninGA mentioned above, you can claim him as a dependent but your child will file their own return and will report the $6,600 on their own return. On his return he needs to check the box that he didn't pay for more than half of her own expenses and that someone will claim him as a dependent. 

[DoninGA]

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@Saigon-Services wrote:

I have 17 years old child and she has a 1099-NEC for $6,600 and I supported all of his living expenses.  Does he need to file his 2021 tax returns if I claim him to my 2021 tax returns?  Or If I need to add his income to my tax returns, how can I add my 1099-NEC self-employed income to my (the parent's) tax returns?  Your advise is greatly appreciated.

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You cannot enter a dependent's earned income from work on your tax return. 

The dependent must file a tax return since he had self-employment income of $400 or more.  He will need to complete a Schedule C for the self-employment income which is included with his Form 1040.  If he has a net profit from the self-employment he will owe Self-Employment taxes but he will not owe federal income taxes due to his income being less $12,550 for a Single filer.

Make sure that he indicates on his tax return that he can be claimed as a dependent.