kcladyjane
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Post by kcladyjane on Jan 29, 2013 10:44:03 GMT -5
I need some tax advice...
A friend of mine is married and has a 16 year old. He wants to claim the 16 year old as a dependent (she lives in his home). She had a job during 2012 where she made $5377 and paid $389 in federal taxes. Does he need to include his daughter's income on his taxes? Or should they file something separately for her? Do they HAVE to file something for her wages? Thanks in advance!
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andi9899
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Post by andi9899 on Jan 29, 2013 11:16:04 GMT -5
I am thinking that if they made more than $3K, someone has to file taxes on that money. If they claims her as the dependent, they have to claim her income. If they didn't, the daughter would have to file the taxes on her own income.
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Deleted
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Post by Deleted on Jan 29, 2013 11:22:59 GMT -5
The father can claim a dependency exemption for his daughter but does not report the child's earnings on his tax return. The child needs to file her own return. Her standard deduction will be her earned income up to the 2012 single standard deduction amount- which without looking it up I believe is $5,950. Thus her standard deduction will be $5,377. The daughter should receive a refund of all of her withholding. It's important that the child check the box on her tax return indicating she can be claimed as a dependent by another taxpayer, i.e., her father. I recommend the child file her tax return using FreeFile.
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kcladyjane
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Post by kcladyjane on Jan 29, 2013 11:25:37 GMT -5
My understanding is the the parents can claim the daugher as a dependent and leave her income off their return. Then the daughter would file a 1040 and mark that she is claimed by someone else. Since she made under the $5950 standard deduction amount I would assume she would get all of her federal taxes paid back in a refund. I wanted to check before I gave them that advice.  |
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kcladyjane
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Post by kcladyjane on Jan 29, 2013 11:27:48 GMT -5
19th hole...we were typing at the same time. I just saw your response. Thanks for the information. That was my guess, but I didn't want to tell them incorrectly.
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thyme4change
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Post by thyme4change on Jan 29, 2013 11:40:02 GMT -5
The daughter should do an 1040EZ, and have her parents claim her as a dependent. It should take her 10 minutes.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 29, 2013 12:26:11 GMT -5
If she will be doing about the same thing this year, she should consider changing her W-4 to exempt with her employer to prevent any more withholding being taken out and having to file. |
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andi9899
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Post by andi9899 on Jan 29, 2013 12:42:31 GMT -5
Wait. Does this mean that both are going to benefit? I like it! I'm glad this came up. My oldest is wanting to take a summer job if she can find one this year. I'm definitely going to ask the tax lady about it when I see her. Thanks!
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 29, 2013 12:45:56 GMT -5
The parents would get to claim her as a dependent and get the exemption for her. The dependent should get all her withheld taxes back because her earned income falls below the threshhold of the standard deduction.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 29, 2013 12:49:05 GMT -5
The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $950, or The individual's earned income for the year plus $300 (but not more than the regular standard deduction amount, generally $5,950).
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mwcpa
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Post by mwcpa on Jan 29, 2013 15:28:24 GMT -5
The daughter files her own tax filing, she cannot claim herself as a dependent since she is a minor and the parents "can" claim her (if he daughter made 1,000,000 and the parents made 10K, the parents still can claim her.... I actually had to deal with this more than one time)....
These rules are not optional....(unless the child was emancepated, then they probably would not be at home, I have also had that issue too)
The only time the parents would consider including the income of a child on their return would be in the event of a minor have interest and dividend income only. This is an election requiring a special form.
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kcladyjane
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Post by kcladyjane on Jan 29, 2013 15:33:25 GMT -5
Thank you everyone!
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TheOtherMe
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Post by TheOtherMe on Jan 29, 2013 23:19:54 GMT -5
The only time the parents would consider including the income of a child on their return would be in the event of a minor have interest and dividend income only. This is an election requiring a special form. Good ole Kiddie Tax on unearned income. |
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