Do I need to add my dependant child’s income?

[MayaD]

You don't add your dependent Earned Income on your tax return.

If your dependent Earned Income exceeds $12,200 in 2019, he/she should file their own return and report the W-2 on their return.

Even if your dependent didn't earn enough to be required to file, they may want to file a return to recover any withholding.

If your child's only income is interest and dividend income (including capital gain distributions) and totals less than $11,000, you may be able to elect to include that income on your return rather than file a return for your child.

[roch37]

I tried two options using TurboTax. One was to add my child's dividend to my return and another to just file his on his own return. When I did his own return, he does not have to pay tax. Is this a TurboTax problem?

[ThomasM125]

If you child's unearned income for 2019 is under $1,100, and that is his or her's only income,then there is no tax due. If you choose to enter your child's income on your tax return, you need to go to the ""Child's Income" section for it to be taxed properly. 

[roch37]

Yes, it is above $1100. But turbotax gave different results. I have to pay tax for it while if I file his return independently, he does not have to pay tax. Unless I provide the inappropriate respond, it should be the same.

[LeonardS]

If your child is younger than age 19 or a full-time student age 19-23, he or she must file a tax return for 2019 if he or she had any of the following:  

• Unearned income (interest, dividends, capital gains, taxable scholarships, unemployment compensation) of more than $1,050.  

•  Earned income (wages, salaries, tips, and fees) of more than $12,200.  

•  Gross income (earned and unearned income) was more than the larger of:   $1,050 or earned income (up to $12,000) plus $350  

If none of the above items apply and you qualify to claim your child as your dependent your child may want to file anyway to get a refund of any tax withheld. 

[roch37]

can I file the child tax return independently (not part of my return) if their dividends is below $11K. Say that if it is around $2K. He has no other income besides that.

[MaryK4]

Yes, you do not have to include your child's dividend income on your tax return- this is more for convenience.

@roch37

[roch37]

So I have a choice to file my child unearned income (below $2K but above $1.1K) in my return vs. filing his own.

Turboxtax software gave two different results. Why is that?

[ThomasM125]

You can file your child's income on your return, but that may result in a higher tax. The advantage of that is not having to go through the expense and trouble of filing a separate return for the child.

If the child's tax is less on his return, however, you can file it that way and it will save you some money in taxes.