My daughter is in college and she qualifies as my dependent (under 24, lives at home, full-time student, and I fully support her). I understand that if her gross income is under a certain amount, she does not have to file a tax return for that year and that value is $12,950 for 2022. If her income surpasses that value and she has to file a tax return as a single person while I am claiming her as a dependent, will her income from her part-time job contribute to my household income for that year? Or, what other impact, if any, will it have on my tax return? Any help or insight is appreciated. I am happy to provide more clarification if needed.
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She files her own return taking care to check the box saying that someone else can claim her. There is no impact on your return unless she has $2,200 or more in unearned income. You would claim education credit if otherwise qualified.
Thank you for replying! She will not have any unearned income this time; everything will come from her part-time job. To clarify and make sure I understand what you mean, you are saying that my tax return would look the same regardless of whether my daughter files a tax return, as long as she checks off the box that someone is claiming her as a dependent if she does?
You understand it perfectly!
Yes, that is correct. Your tax return would look the same regardless of whether your daughter files a tax return, as long as she checks off the box that someone is claiming her as a dependent, as long as she has earned income only.
For additional information, please see Should I Include a Dependent's Income on My Tax Return? and How do I add a dependent's W-2 to my return?
So that means it does not increase the parent's income by the amount the dependent earned, is that correct?
Thank you for clarifying
Correct, your daughters earned income does not in any way increase your income on your return.
One more question, if my dependent full time 22 year old college student made more than $13,000, he would file his own taxes, but I could still claim him as a dependent, correct?
Yes he is still your dependent. Make sure on his return he checks the box that says he can be claimed on someone else's return.
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