my daughter is 17 years old is she too old for earned income credit? and she started working parrt time around october but i still claim her should i include her on my taxes this year or does she claim her own taxes?

  • Can I still get earned income credit for my 17 and 18 year old children they both still live with me
  • See answer below
Cancel
A 17 year old no longer qualifies her parents for the Child tax credit. She still qualifies you for the earned income credit.
You should continue to claim her as a dependent on your return.  The exact rules are:

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

3. He lived with the parent (or was 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 him self.

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

 

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim his own exemption. If he has sufficient income, he can & should still file taxes; he just doesn’t get his own $3800 exemption (deduction). In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.  

  • If your dependent child is under age 18 (or under 24 if a student), he or she must file a tax return for 2012 if he had any of the following:
    1. Total income (wages, salaries, taxable scholarship etc.) of more than $5,950.
    2. Unearned income (interest, dividends, capital gains) of more than $950.
    3. Unearned income over $300 and gross income of more than $950
    4. Household employee income (e.g. baby sitting, lawn mowing) over $1800 ($5950 if under age 18)
    5.   Other self employment income  over $400
  • My 18 year old daughter earned $1,170 in 1099-INT Interest Income from a treasury bond her grandfather gave her.  She is still a dependent and full time student.  Does she need to file her own tax return?
  • m_hetterly,
    Yes, she has investment (unearned) income exceeding $950. A 1099-INT is for interest income. So, she is required to file a return.
    But, If her only income is from interest and dividends, there is a provision for entering it on your return, using form 8814. You may do that instead of filing a separate return for her.
    Enter at:
    - Federal Taxes tab
      Scroll down to:
     - Wages & Income
      - Explore on My Own
    Scroll down to
       -  Less common Income
       -- Child's income
Cancel
Contribute an answer

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.
Cancel