How do I file Dependant Income

[Tornado84]

My infant dependants had income this year, do I file that with my return, or a seperate return for each of them?

[Carl]

You may not need to report that income at all, if you're lucky. What's the amount of the income for each dependent separately? (less than $6300???) What tax reporting form is that income reported on, and in what box on that form is the income reported?

[Tornado84]

Its  W-2 in their name, and its less than a thousand each

[Carl]

That's good. Now the key question. Was any tax withheld on that income? (Box 2)

[Tornado84]

yeah, so I think I have to file to get it back, right?

[Carl]

Here's how this works in your specific situation.

Since the dependent earned less than $6300 for the entire tax year, a tax return is not required to be filed. However, if taxes were withheld from that income (box 2 only) then a tax return "should" be filed to get that withheld money refunded to the taxpayer (infant). Your reference to them as "infants" leads me to thinking they can't talk or at least write their own names yet. So you'll have a "few" low-intensity (easy) hoops to jump through to make this happen.

First, since you're using the online version of TurboTax, be aware that one online account can only be used to file one tax return. But you can create up to 5 accounts per e-mail address. To do that, simply log out of the account you're using "right now" and click the Create Account link under the password entry field and go from there. You'll have to create a separate account for each tax return to be filed. I would expect the young ones to qualify for the free filing, so their tax returns shouldn't cost you a dime to file. (Federal returns for sure, not sure about state returns if they had state taxes withheld.)

Now, if you are going to have the IRS mail their refunds as a paper check, then get with your bank first before you do this (if the young ones can't write their own names) to see what you need to do in order to cash those checks on their behalf.

If you are going to have the IRS do an ACH direct deposit to a bank account electronically for them, then whatever bank account the IRS will be sending it to electronically, must have the refund recipient's name on that account. Otherwise, the bank will reject it back to the IRS, and the IRS will send a paper check anyway. So check with your bank also, if you're going to go this route, before you file their tax returns.

See? Just a "few" hoops maybe, and it's really not all that bad.

Your other option is to include their income on your tax return. But here's the problem. If you do that, then it increases "your" taxable income and "you" will pay taxes on that money based on your tax bracket. So it's actually better to file separate returns for each of the youngun's so they get "their" money back. 🙂