Filing tax returns for minors
Today's question comes from Roger V. in Tampa, Florida. He wants to know more about the process of filing a tax return and claiming deductions for a minor.
Q: My son is 17 years old and had a part-time job most of this year. He'll probably make close to $10,000 by the end of the year. My wife and I will be claiming him as a dependent on our taxes. Does he need to still file a return? Can he claim any deductions?
A: First, congratulations to your son. A job is a great way to learn more about personal responsibility and finances, balancing work life and school life and of course, making a little extra money.
Yes, he'll still need to file state and federal tax returns for his income and any sort of investment gains or savings account interest even if you claim him as a dependent. What's important to note though is that he cannot claim a deduction for himself if you are claiming him as a dependent.
My friend's family had this issue come up while their 19 year old daughter was living at home and working. The parents claimed her as a dependent, but she also took a personal deduction on her own taxes. The IRS red-flagged this, as it is essential an illegal attempt to take credit for the same individual on two different tax returns. They had to sort things out with the IRS folks, paying the previously unpaid taxes plus a small penalty.
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Q: My son is 17 years old and had a part-time job most of this year. He'll probably make close to $10,000 by the end of the year. My wife and I will be claiming him as a dependent on our taxes. Does he need to still file a return? Can he claim any deductions?
A: First, congratulations to your son. A job is a great way to learn more about personal responsibility and finances, balancing work life and school life and of course, making a little extra money.
Yes, he'll still need to file state and federal tax returns for his income and any sort of investment gains or savings account interest even if you claim him as a dependent. What's important to note though is that he cannot claim a deduction for himself if you are claiming him as a dependent.
My friend's family had this issue come up while their 19 year old daughter was living at home and working. The parents claimed her as a dependent, but she also took a personal deduction on her own taxes. The IRS red-flagged this, as it is essential an illegal attempt to take credit for the same individual on two different tax returns. They had to sort things out with the IRS folks, paying the previously unpaid taxes plus a small penalty.
posted by Scott at
4:13 AM
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