OT - Taxes and a 20 yo full time student

[Mikej]

Just looking for someone who maybe went through this-
My 20 yo full time student had a paying internship last year - he made around 8k and the feds held 700 in taxes. How do I do his taxes? Take the additional credit for other dependents? Do I add his pay to ours? Let him do his own? We are taking the standard deduction.

[cp43]

I'm not an account / tax preparer, but, I was once an intern.

He still has to file for himself.
You can still claim him as a dependent, but if you do so, he can't take his standard deduction.
Or, you can not list him as a dependent, and he can take his deduction.

The IRS cross checks for returns that take the deduction, and are also listed as a dependent on another return. So, make sure you are consistent.

Chris

[VTCaraco]

I'm not an account / tax preparer, but, I was once an intern.

He still has to file for himself.
You can still claim him as a dependent, but if you do so, he can't take his standard deduction.
Or, you can not list him as a dependent, and he can take his deduction.

The IRS cross checks for returns that take the deduction, and are also listed as a dependent on another return. So, make sure you are consistent.

Chris

This matches what we did....

Son filed, we listed him as dependent.
His income in 2018 qualified him for no tax liability. 2019 he has some and compensated as self-employed. Felt sufficiently complex that I handed it off to my accountant...but I think it's fairly straight-forward (biggest hope was that my accountant could find some ways to counter his earning ~ moving, clothes, food, etc.).

[Mikej]

https://ttlc.intuit.com/community/taxes/discussion/can-i-claim-my-20-year-old-in-college-as-a-dependant/00/564541

Pretty much I can claim him for additional $500 and he files his own, since it’s under $12000 he gets his federal money back. Thanks for the help!

[Spaghetti Legs]

Good thread. I have same situation as OP. We're Face Timing in a couple of hours so I can help him get started on his first return. He delivered food for Uber Eats last summer and that looks like that might be a headache. We also have to figure out his state tax return as his summer job and school job are in different states.

[Mikej]

Ok here is my current question- I claimed him as my defendant and qualified for the “credit for other dependents” but can he claim the std deduction on his own taxes since I claimed him as a dependent? Remember their isn’t a difference it’s just Married filling jointly now, I don’t add up dependents.

[cp43]

Ok here is my current question- I claimed him as my defendant and qualified for the “credit for other dependents” but can he claim the std deduction on his own taxes since I claimed him as a dependent? Remember their isn’t a difference it’s just Married filling jointly now, I don’t add up dependents.

No, if you claim him as a dependent, he can't take the standard deduction.

Again, I'm not a tax preparer, and my experience was 15 years ago, so you probably want to double check.

Chris

[Mikej]

No, if you claim him as a dependent, he can't take the standard deduction.

Again, I'm not a tax preparer, and my experience was 15 years ago, so you probably want to double check.

Chris

Since 2018 the standard deduction has changed, it sure how it works though

[Mikej]

https://www.irs.gov/taxtopics/tc551

Looks like a qualifying child can claim a standard deduction. Of sorts.

[semdoug]

We used the AARP free tax prep service when our daughter and us were in the same situation. The folks doing the voluntary work are well informed. They usually set up in a local library or community center during tax season. Covid-19 might have impacted this service.

[C40_guy]

We used the AARP free tax prep service when our daughter and us were in the same situation. The folks doing the voluntary work are well informed. They usually set up in a local library or community center during tax season. Covid-19 might have impacted this service.

According to their website, they may not be providing in person services right now.

H&R Block website was less useful. Couldn't tell, even from the page that was supposed to have the info.... :(

(looking for a friend...I've been using TurboTax for a long time, doing our taxes and two adult kids' taxes...)

[Ralph]

I claim a 44 year old handicapped daughter on my tax return as a dependent (I provide over 50% of her support). She has investments in her name only that usually bring in $4000-5000 a year in Dividends and sometimes a cap gain. I file a tax return for her, and her income is considered taxable income, but is not enough income for her to have to pay any taxes. if there was any with holding, she would get it back. So I get the benefit of claiming her as a dependent, and her income is so low that she pays no taxes. I have to file because she gets 1099's.

If you use Turbo Tax like I do (or another service).....it might make you check to see if your son is eligible for a earned income tax credit for that level of income. My daughter would be eligible based on her income, but is ineligible because it is not "earned" income from a job. Your son may be eligible, since his income is from a job.