You continue to claim him as a dependent. Being away at college (living on or off campus) is considered to still be living at home. A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
1. He is under age 19, or under 24
if a full time student for at least 5 months of the year, or is totally &
permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are
considered third party support and not as support provided by the student.
3. He lived with the parent
(including temporary absences such as away at school) for more than half
the year
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You do not report his/her income on your return. If it has to be reported
at all, it goes on his own 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 2016 if
he had any of the following:
1. Total income (wages,
salaries, taxable scholarship etc.) of more than $6,300 (2016).
2. Unearned income (interest,
dividends, capital gains) of more than $1050 (2016).
3. Unearned income over $350
and gross income of more than $1050
4. Household employee income
(e.g. baby sitting, lawn mowing) over $2000 ($6300 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.
