How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps
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New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

 
9 Replies
Level 15

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

You do not report his/her income on your return.  She has to file her own separate tax return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2017 if he had any of the following:

1.         Total income (wages, salaries, taxable scholarship etc.) of more than $6,350 (2017).

2.         Unearned income (interest, dividends, capital gains) of more than $1050 (2017).

3.         Unearned income over $350 and gross income of more than $1050

4.         Household employee income (e.g. baby sitting, lawn mowing) over $2000 ($6350 if under age 18)

5.         Other self employment income over $400, including box 7 of a 1099-MISC

 

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

 He doesn’t get his own $4050 exemption (deduction), when he files. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.

You can, most likely, still claim her as a dependent and get the Earned Income credit (EIC) for doing so. You can not use her income to calculate additional EIC. You will not get the child tax credit if sh is over 16.

MAGI is Modified Adjusted Gross Income. It has many different purposes and is calculated differently depending on what tax attribute you are dealing with. You haven't described anything that MAGI would affect either your or your daughter's return.



New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

Thankyou for the steps,  just to confirm if I do what you stated above I should be okay with getting EIC and we would both be filling correctly our taxes? As far as MAGI , when I'm on the heath section it asks if one of my dependents is able to file? To get a hold of her tax form and depending in what form to add line 8b to 37 or 8b to 21 or add line 4. It says it's used to calculate the premium tax credit I qualify for.  What does this mean?
New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

Thankyou for the steps,  just to confirm if I do what you stated above I should be okay with getting EIC and we would both be filling correctly our taxes? As far as MAGI , when I'm on the heath section it asks if one of my dependents is able to file? To get a hold of her tax form and depending in what form to add line 8b to 37 or 8b to 21 or add line 4. It says it's used to calculate the premium tax credit I qualify for.  What does this mean?
New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

When she files her taxes, how soon does,she have to pay what she owes the IRS? Also a fulltime student is a student that went to school at least 5 months in one yr correct?
Level 15

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

You will  be okay with getting EIC and you will both be filling correctly our taxes.
She must Pay what she owes by April17, or there will be late payment penalties.

Adding her income for MAGI only means her income counts for purposes of calculating household income to determine the premium credit. Her income does not count for anything else, on your  tax forms, including EIC
New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

What is premium credit? I'm not understanding that part.  Thankyou for your help!!
Level 15

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 & is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

The government, thru the tax  filing system, helps you pay your health insurance premium. The credit is claimed on form 8962 and line 69 of form 1040 or line 45 of form 1040A.
References:
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tips/health-care/what-is-the-premium-tax-credit/L6gAHB5ld">https://t...>
<a rel="nofollow" target="_blank" href="https://www.healthcare.gov/glossary/premium-tax-credit/">https://www.healthcare.gov/glossary/premium...>
<a rel="nofollow" target="_blank" href="https://www.irs.gov/affordable-care-act/individuals-and-families/the-premium-tax-credit-the-basics-0...>
New Member

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 &amp; is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

What is we didn't have health insurance? Because for both myself and daughter neither of us had health insurance. So earlier you mentioned not to put her income but in this case its okay,  right?
Level 15

How do I use my daughter tax credit, this will be her 1st time filling. She made 9383.25 &amp; is a f/t student. What is MAGI, I made 16000. Will MAGI affect me? Tell steps

If you don't have health insurance, you may be subject to the penalty (line 61 of form 1040 or line 38 of 1040A). So, yes, do enter her income  when asked to enter your child's MAGI, in the health care section of the TurboTax interview. Do not enter it as actual income in the Wages & income section.
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