My 14-yr old daughter worked a summer job making $1200 for the summer of 2023. How do we file her taxes but include her as a dependent on my wife and I's joint filing?

[VolvoGirl]

Did she get a W2 or 1099NEC for it?    For 2022 or 2023?  

So for 2022 or when you do your return next year for 2023.........

You don't include their income on your return. It would only go on their return if they are required to file one. To file a separate return for your dependent you need to set up a new account. Online is only good for one return per account. You can use the same email address for 5 accounts. They can probably use the Free Edition. How to start a new online return
https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-onli...

Be sure on their return they check the box that says they can be claimed on someone else’s return. If their only income is W2 and under 12,950 they do not have to file a return except to get back any withholding taken out.

If she got a 1099NEC or 1099MISC she has to file a return and report it as self employment income.

Filing requirements for a dependent
https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

[Bsch4477]

You only file a return for her to get back any tax withheld assuming that this is her only income. That income doesn’t affect your claiming her as a dependent and isn’t reported on your return. As an aside, her income qualifies her to start a Roth IRA if you would like to set that up for her. 

[VolvoGirl]

Oh, and yes you can still claim her on your return no matter how much she made.  Be sure on her return she checks the box that says she can be claimed on someone else's return.  That's very important.  

[DoninGA · Accepted solution]

You do not enter her earned income on your tax return.

If she is under the age of 19 you can claim her as a dependent under the Qualifying Child rules regardless of the income she earned.  Provided that she lived in your home for at least 6 months of the year and she did not provide over one-half of her own support.

If she was an employee and will receive a W-2 she is not required to report the income unless taxes were withheld then she should file a tax return to get the taxes refunded to her.  If she does file a tax return make sure that she indicates on her tax return that she can be claimed as a dependent. 

If she was self-employed and not an employee then she is required to file a tax return to report her self-employed income and expenses since her self-employed income is $400 or more.  She reports the income on Schedule C of the federal tax return, form 1040.

[Mike9241]

if she got a w-2 for the 1200 with no withholding and no other income she would not have to file a return.

the only way to get back withholding is for her to file a return, but you have to consider the cost of filing vs the refund she would get.

if she got a 1099-NEC for the 1200 she will have to file because she will owe self-employment tax if the net after subtracting expenses related to the $1200 is more than $400. 

in either case nothing prevents you from claiming her as a dependent. in fact, she must mark her return, if filed, that she can be claimed as a dependent. failure to do this will cause e-filing problems for either you or her. 

[Hal_Al]

As others have said:

1. She does not need to file a tax return, unless she needs a refund of income tax withheld (box 2 and/or box 17 of the W-2).

2. She is still your dependent regardless of her income.

EXPLANATIONS:

TAX RETURN FILING

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 2022 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022).
2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1150 (2022)
3.          Unearned income over $400 (2022) and gross income of more than $1150 (2022)
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

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.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.

BEING A DEPENDENT

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.

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 excluded from the support calculation
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on himself.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.