Can i claim my working teenager on my taxes?

Dimitri Larkin asked a question: Can i claim my working teenager on my taxes?
Asked By: Dimitri Larkin
Date created: Sat, Apr 17, 2021 9:54 PM
Date updated: Sat, Sep 3, 2022 5:57 PM


Video answer: At what age does a child have to file a tax return?

At what age does a child have to file a tax return?

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Claiming Working Teens as Dependents

Generally, the IRS allows you to claim eligible dependents who work as long as they don't provide more than half of their own financial support during the year. Your teen also has to live with you for more than half the year.

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Even if your child had a job last year, you can still claim her as a dependent on your income taxes, provided the child is still considered a qualifying child based on IRS guidelines. However, depending on how much income your child earned, she may have to file her own tax return, too.

Your teen also has to live with you for more than half the year. It’s important to note that if you do claim your teen as a dependent and they end up having to file a separate return for summer job income, they won’t be able to claim a personal exemption for themselves on their taxes. Beware the Kiddie Tax

Chances are if your teen earns over $12,400 in 2020 they will need to pay taxes on their income. But even if they earn less than that they will likely still want to file a return at tax time since they likely had taxes withheld from their paycheck and may qualify for a return of overpaid taxes.

When a teen is a W-2 employee, payroll taxes, and even federal taxes, can be withheld from the paycheck. The fact that federal taxes often come back as a refund rarely registers with teenagers. An employer will provide the contractor with a 1099 tax form showing the amount paid to them rather than the W-2 that is provided to an employee.

Yet just because a working teen is a dependent doesn't mean that his parents automatically claim his income on their return. Anyone who earns sufficient income must file a return independently....

Can I still claim the Child Tax Credit? Each dependent child under the age of 17 can qualify you for the $1,000 per child tax credit. The credit is available to you even if your child is working and paying taxes on their income. Unfortunately, the year your child turns 17 the tax credit is no longer available.

Anyone who meets the criteria may claim the exemption, regardless of age. This exception can often apply to teens working just during the summer because they do not make as much as someone working year-round. If a teen works year-round, however, the teen may make too much money to be eligible for the exemption from withholding.

The total of all sources of your teenager's income determines whether she's required to file a tax return. She can earn up to the amount of the standard deduction for single filers, $5,950 as of the 2012 tax year. This means she can earn about $114 a week if she works all year and doesn't have any scholarship income, grant income or unearned income.

Be related to you. Be under 19 (or a full-time student under 24) Live with you for at least half of the year. Rely on you for financial support. In addition, you must be the only one claiming them as a dependent. If you share custody of the child, it’s important to know which of you will claim them as a dependent.

You can still claim your child as a dependent on your own return. He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return. (Supervise this closely or prepare it for him!)

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