![]() ![]() Your son's income does not count as part of your income for the affordable care act guess I was imprecise in my language. Children under age 24 can't get this credit unless they are living independently with an income over $20,000 or they are orphans.ĥ. You may qualify for an education credit if you claim your child as a dependent and enter their 1098-T on your tax return. If the child has any other kind of income (working, prizes, scholarships, capital gains) then all the child's income is reported on a return in the child's name only.)Ĥ. The only time a parent might include a child's income on the parent's return is if the child is under 18, or under 24 and a full time student, and their only income is interest and dividends from investments. Note that there may be state credits based on the income of all the people in the "household", and your child's income might be includable for figuring the credit even though it is not part of your taxable income for income taxes.ģb. A dependent's income earned from working is never included on a parent's tax return in any form (at the federal level).ģa. If a person (your child) qualifies to be claimed as a dependent, that person must answer "Yes, I can be claimed as a dependent", even if they don't want to be claimed and even if the person who could claim them, won't claim them.ģ. You are never required to claim a dependent.Ģ. You may want to file an amended return (or, if you have not filed yet, correct the error and make sure you understand all the prior answers before filing.)ġ. When I did that I ended up paying taxes instead of receiving a refund. The way it read I thought I had to include him regardless. in addition, your son would have to file a you! Yes, I included his income in the AGI but he was not covered under my healthcare plan. Now if your son was covered under your Marketplace policy, there are numerous possibilities because of the very liberal rules for allocating policy amounts. If one has an amount on line 34 and the other on line 37 it would be best choosing the one with an amount on line 34 If both show an amount on line 37 it would likely be best choosing the one with the smallest amount due If both show an amount on line 34 it would likely be best choosing the one with the larger refund ![]() one including him and then one that does not. The only way to tell which is best is to do 2 computations. if you are not married, then without another dependent your filing status would be single vs head of household which would also increase your taxes. there may be loss of various tax credits that would more than offset any increase in repayment of the health care subsidy. What we don't know because we have no data is the effect of including him vs not. Otherwise, including his income would likely lower the subsidy you were entitled to vs what you got. including him as a dependent requires that his modified AGI be included in household income unless he is not required to file a return but filing only to claim a refund of withheld income tax or estimated tax. You might also want to use free software from the IRS Free File versions:Īll this assumes he was not covered under your Marketplace Health Insurance. If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare. (Supervise this closely or prepare it for him!) ![]() 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. You can still claim your child as a dependent on your own return. you do not include the information on your own return. If your dependent has a W-2 for his after-school job, summer job, etc. His income only goes on his OWN tax return. You do not put your dependent's income on your own tax return. Not sure why you think his paycheck would cost you money. You are not required to claim a dependent but if your dependent files their own tax return, the dependent is required to say on their own return that they can be claimed as a dependent on someone else's tax return. ![]()
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