Is it better to claim my 19yr old son who goes to college (and I have 1099-Q) who only earned $1021on W-2 or have him file his own? Will I lose any potential deductions?

[xmasbaby0 · Accepted solution]

Claim your son on your own tax return.   You get the $500 credit for other dependents, education credit, possibly earned income credit and if you are a single parent --Head of Household filing status.   If he had any tax withheld from his paychecks he can file a return himself to seek a refund of the amounts in box 2 or box 17 of his W-2.   He must say on his own return that someone else can claim him as a dependent.

[MinhT1 · Accepted solution]

If your son has income in 2024, you don't report your son's income on your tax return.

You can still claim him as a dependent if he didn't provide more than half of his own support for the year and he was under 19 at the end of 2024 (or under 24 and a full-time student) and you will have a tax credit of $500 for claiming him.

If he was 19 or older (or 24 or older and a full-time student), you can't claim him as a dependent if he earned more than $5,050 in 2024.

If it has to be reported, at all, it goes on his own return. If your dependent son is under age 19 (or under 24 and a full-time student), he must file a tax return for 2024 if he had any of the following:

1. Total income (wages, salaries, taxable scholarship etc.) of more than $14,600 in 2024.
2. Unearned income (interest, dividends, capital gains) of more than $1,300.
3. Gross income (earned plus unearned) exceeding the larger of $1,300 or his earned income (up to $14,600) plus $400.
4. Other self-employment income over $400, including box 1 of a 1099-NEC

If your dependent son files his own return, he has to indicate in the My Info section of TurboTax that he can be claimed as a dependent by another taxpayer.

Even if he had less, he can file if he needs to get back income tax withholding. He can't get back Social Security or Medicare tax withholding.

As for form 1099-Q,  you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution.