Is My
Dependent Required to File a Tax Return If They Have Income?
Your dependent may be
required to file a return if they have one or more of the following types of
income:
- Earned
income: This includes wages, salaries, and
other amounts you received as pay for work you actually perform. Taxable
scholarship income is also generally included.
- Unearned
income: Interest, capital gains, and interest are
examples of unearned income. Trust distributions of dividends, capital
gains, interest, and survivor annuities are also considered unearned
income.
Income
Requirements for Dependents to File a Federal Income Tax Return
If your dependent is
claimed on your tax return, they may still be required to file an income tax
return of their own. The requirements vary by marriage status and age.
The minimum income
requirements for dependents are listed in the table below.
Marriage Status
|
Age
|
Minimum Income Requirement
|
Minimum Self-Employment Income Requirement
|
Single
|
Under
65 (and not blind)
|
More than $6,300 earned
(or more than $1,050 unearned*)
|
$400
|
65 or
older OR blind
|
More than $7,850 earned
(or more than $2,600 unearned)
|
$400
|
|
65 or
older AND blind
|
More than $9,400 earned
(or more than $4,150 unearned)
|
$400
|
|
Married**
|
Under
65 (and not blind)
|
More than $6,300 earned
(or more than $1,050 unearned)
|
$400
|
65 or
older OR blind
|
More than $7,550 earned
(or more than $2,300 unearned)
|
$400
|
|
65 or
older AND blind
|
More than $8,800 earned
(or more than $3,550 unearned)
|
$400
|
* Income that you did not
earn by working, such as investment
income or gifts.
** You must file a return
if your spouse files a separate return and itemizes deductions and your
total income is $5 or more.
If My
Dependent Files a Tax Return on his or her own, how will this affect my own Tax
Return?
Please be aware
that you can NOT include your dependent's income as income on
your own tax return. In addition, your dependent needs to check a
box on his or her own tax return to report that he or she can be
claimed as a dependent on somebody else's tax return.
If My
Dependent Has No Income, Do They Still Need to File?
They may need to file a
return if one of the special reasons to file a tax return applies
to them. For example, if they bought health insurance from the
Marketplace, they need to file a return in order to claim the refundable Premium
Tax Credit.
Is It
OK for My Dependent to File a Tax Return Even If They Don't Need to File?
There's no harm for your
dependent to file a tax return. It's possible that they will received a refund (and
they should file a return in order to claim the refund).
How Can
My Dependent Find Out If They Will Receive a Tax Refund?
Yes, please consult with
a tax professional.
Can My
Dependent Claim Their Own Personal Exemption When They File Their Tax Return?
Your dependent cannot
claim their own exemption if you already claim an exemption for them on your tax
return. They will need to check the box on their return indicating that someone
else is claiming them on a tax return.
If My
Dependent is Under 16 Years Old Filing a Return For the First Time, Can They
Efile?
No, they will need to
prepare and file their return to the IRS via mail. However, they can efile
their tax return the following year.
What If
My Dependent Cannot File Their Own Return Due to Their Age?
If your dependent child
must file a tax return, but cannot because of their age or other reason, you, a
guardian, or other person who is legally responsible for the child must file
the return on the child's behalf. The person must also sign the child name on
the return if the child cannot sign it, followed by "By [your signature],
parent for minor child."
Can I
Claim My Dependent's Income on My Tax Return?
No, your dependent can
only claim their income on their own tax return.
What If
I Have a Dependent Child Who Earned Income by Performing Services?
This income is included
in your dependent's gross income and must be reported on his or her individual
tax return. This is true even if a local law states that a child's parent has
the right the claim the earnings and even received the earnings because of this
ruling.
What If
My Child Does Not Pay the Tax Due on the Income?
You (or the child's
guardian) are responsible for paying the owed tax.
Is
There Other Tax Information from My Dependent That I Could Report on My Tax
Return?
You may be able to
include your dependent child's dividend and interest income on your tax return.
Your child will not have to file their own tax return if you do this.
All of the following
conditions must be met before you can claim your child's interest and dividend
income on your return:
- Your
child is under age 19 (or under age 24 if a he or she is a student)
at the end of the Tax Year.
- Your
child's gross income is only from dividends and interest (including
capital gain distributions and Alaska Permanent Fund dividends).
- The
dividend and interest income was less than $10,150
- Your
child is required to file a tax return unless you meet the requirements to
file your own return with your child's income.
- Your
child does not file a joint tax return.
- No
estimated tax payments were submitted for the current Tax Year and no
overpayment for the previous Tax Year were applied for the current Tax
Year under your child's name and Social Security number.
- You
must be the parent whose tax return is used when reporting your child's
income.
- No
federal backup withholding tax was withheld from your child's income.
What is
Backup Withholding?
Usually, backup
withholding applies to most types of payments reported on Form 1099. These
payments include:
- Interest
payments (reported on Form 1099-INT)
- Dividends
(reported on Form 1099-DIV)
- Patronage
dividends (reported on Form 1099-PATR, but only if at least half the
payment is in money)
- Rents,
profits, or other gains (reported on Form 1099-MISC)
- Commissions,
fees, or other payment for independent contractor work (reported on
1099-MISC)
- Payments
by brokers (reported on Form 1099-B)
- Payments
by fishing boat operators (reported on Form 1099-MISC, but only the money
part and it should represent a share of the proceeds of the catch)
- Royalty
payments (reported on Form 1099-MISC)
- Gambling
winnings (reported on Form W-2G)
What
Types of Income Does Not Apply Backup Withholding?
Backup withholding generally
does not apply to other payments reported on Form 1099-MISC (other than royalty
payments and payments by fishing boat operators) unless at least one of the
following three situations applies:
- The
amount received from any payer is $600 or more
- The
payer had to give you a Form 1099 for the previous Tax Year
- The
payer made payments to you last year that were subject to backup
withholding
- The
amount is less than $10 (neither a Form 1099 nor backup withholding is
required)
Can I
Still Claim My Child As a Dependent?
Yes, if your dependent
qualifies as your qualifying child or qualifying relative.
Should
My Young Child/Relative File a Tax Return On Their Own or with Me?
Your child or relative
should file on their own.
Can I
File as Head of Household?
In order to qualify for
the Head of Household filing status, you
are required to claim your child or relative as a dependent on your tax return
(exception: if you released a claim for exemption for child).
Does My
Child Have to File a Tax Return As a Student?
Your student may
need to file a return if they meet the IRS filing requirements. Even if they
are not required to file, they may want to file a return in order to claim a
refundable tax credit (i.e. American Opportunity
Credit).
How
Does My Dependent File a Tax Return?
Your dependent can start
preparing and filing their 2016 tax return as early
January 2017. We will determine the correct forms for them based on their
answer to some simple tax questions. Then we will guide them through filling
them out correctly, and we will double-check everything for accuracy and
missing information.
Which
Tax Form Does My Dependent Need to File?
It's most likely your dependent will qualify for the 1040EZ.
What
Information Does My Dependent Need to File a Tax Return?
Your dependent will need
copies of his W-2, 1099-MISC, or other tax informational forms from their
employer.
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