tax file for my daughters

[taxmoney101]

Hi there,

1. One daughter doesn't have  the W2 do i still need to file the tax return for my daughter? I am claiming her as my dependent. She has the 1099 Q and 1099 T from her school. 

2. My other daughter has a W2 . Amount is less than $4000.00 . But she has  school loans and 1099T , I am planning to claim her as dependent as well . Can i still file her tax return? 

Thanks

[MonikaK1]

For the daughter with no copy of the W-2, she can file a return without it but would need to use the Substitute W-2 process, which would require filing by mail. Fill out the W-2 in TurboTax using the information from her last pay stub or other information. Continue the W-2 interview until you see uncommon situations and select "didn't get W-2".

She should try contacting the employer for a copy of the W-2. See this article for more information.

For the daughter with a copy of the W-2, she may be required to file. Dependents are required to file if any of the following apply:

• unearned income was more than $2,900 ($4,650 if 65 or older and blind).
• earned income was more than $14,700 ($16,450 if 65 or older and blind).
• gross income was more than the larger of:
•     $2,900 ($4,650 if 65 or older and blind), or
•      earned income (up to $12,550) plus $2,150 ($3,900 if 65 or older and blind).

If she had withholding or made any estimated tax payments for 2022, then you should file a return to claim a refund of the taxes paid.

See this article from TurboTax for more information regarding who is required to file a tax return.

Click here for information from IRS regarding who should file and who needs to file.

[taxmoney101]

Thanks Monica.  By no W2 i meant that she doesn't have any pay stub or income at all for 2022. But she has 1099 INT and 1099 Q. Does she need to file the tax return for 2022? I am claiming her dependent in our husband wife joint return

[SharonD007]

It depends. If your dependent child’s only source of income was investment income and it was less than $1,150 (in interest, dividends, and capital gains), they are not required to file a tax return. Form 1099-Q only needs to be reported on the tax return of the person whose SSN is on the form if the withdrawal is more than the tuition paid in Box 1 of the 1098-T plus other adjusted qualified educational expenses. In that case, the earnings on the excess distribution would be taxable income. To find out what are qualified educational expenses, please review the Guide to Tax Form 1098-T: Tuition Statement.

Please review the TurboTax article Guide to IRS Form 1099-Q: Payments from Qualified Education Programs for further details.

You can report the 1098-T on your tax return if your daughter qualifies as your dependent. You may also qualify for the Lifetime Learning Credit or the American Opportunity Tax Credit if it is not for the same expenses that the 529 Plan was used for. For example, If the 529 Plan withdrawal was $5,000 and the tuition and qualified educational expenses are $10,000, you can claim a $1,000 lifetime learning credit on $5,000 of expenses, and the qualified expenses on your 529 plan will be reduced by $5,000.

Please see the TurboTax articles Guide to Tax Form 1098-T: Tuition Statement and What Are Education Tax Credits? For additional information.

[taxmoney101]

Thanks again for your help.

My daughter is stduent who lives in another state for her education. In the tax return do i need to include that state as her residence?

[TeresaM]

Most likely no. If she is away at school temporarily, and her permanent address is still with you, then she will count as still living with you all the months of the year. 

If she moved away to school, changed her driver's license and voter's registration, and does not intend on returning back to her home state, a case could be made that she lives in the state of her school.
 

[taxmoney101]

Thanks. She is planning to do a part time job this year while attaining the school in different state.

Is it still okay to claim her residency in her home state. Her driving license and voter registration is still has the home address

[PattiF]

Yes, it is still okay to claim her residency in her home state. Attending school is considered a temporary absence.

From the IRS Publication 501:

Temporary absences.

You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, military service, or detention in a juvenile facility. It must be reasonable to assume the absent person will return to the home after the temporary absence. You must continue to keep up the home during the absence.

@taxmoney101 

[taxmoney101]

Thanks! if i claim my daughter as dependent, can we stil claim the america oppertuniny education credit in her tax return? 

[CatinaT1]

No. You will claim the American Opportunity Credit on your return if she is your dependent. Someone who is a dependent can not claim the credit.