claiming a 20 year old child with income

[kb1179]

What is the name of your state (only U.S. law)? MS

How does it work claiming your 20 year old child who is a full-time student with a part time job?

Our daughter is 20 years old and has a part time job and goes to college full-time.

Last year she did not live with us so we didn't claim her. She filed her own return and got a refund on her federal taxes.

In 2013 she lived with us June-December. We provide her health insurance as well as pay 1/2 of her out of pocket expenses for community college.

Can we claim her on our taxes? Can she still file her own return and get back her federal taxes?

Thank you.

 

[LdiJ]

What is the name of your state (only U.S. law)? MS

How does it work claiming your 20 year old child who is a full-time student with a part time job?

Our daughter is 20 years old and has a part time job and goes to college full-time.

Last year she did not live with us so we didn't claim her. She filed her own return and got a refund on her federal taxes.

In 2013 she lived with us June-December. We provide her health insurance as well as pay 1/2 of her out of pocket expenses for community college.

Can we claim her on our taxes? Can she still file her own return and get back her federal taxes?

Thank you.

If she is in college full time, yes you can claim her. Yes, she can still file a tax return of her own, but she would have to file as a dependent of another and would not get to claim her own exemption, just her standard deduction.

 

[kb1179]

Would she still get a refund of what she paid in federal taxes?

The situation we're in is that she is refusing to give us her w2 if she isn't going to get a refund.

 

[kb1179]

It wont let me edit my post. I just wanted to add that she made about $9000 last year. I think. That's just an estimate.

 

[LdiJ]

It wont let me edit my post. I just wanted to add that she made about $9000 last year. I think. That's just an estimate.

She might not get a refund or not much of a refund if you claim her as your dependent. However, you do not need her W2 to claim her as a dependent.

 

[kb1179]

Ok this is where I get really confused. And thank you so much for your help.

I thought in order to claim her on our taxes we have to claim her income?

 

[LdiJ]

Ok this is where I get really confused. And thank you so much for your help.

I thought in order to claim her on our taxes we have to claim her income?

No, absolutely not. You should never claim your child's income on your tax return. Even if your child was only 15 and had a part time job you should NEVER claim your child's income on your tax return. Their income goes on their own tax return, and they check the box on their tax return that says they are a dependent of someone else.

If you have been doing that, you have been doing your taxes wrong.

 

[kb1179]

No, absolutely not. You should never claim your child's income on your tax return. Even if your child was only 15 and had a part time job you should NEVER claim your child's income on your tax return. Their income goes on their own tax return, and they check the box on their tax return that says they are a dependent of someone else.

If you have been doing that, you have been doing your taxes wrong.

Ahhhhh ok. So now let me ask you this. What if we claim her on our taxes and tell her that she needs to check that box stating that she is a dependent of someone else, but she doesn't? As in what if she just files her tax return like she did last year so she can get a refund. What will happen then?

She is mad that we want to claim her because then she won't get a refund. My opinion is that she lived here for free, her and her boyfriend ate thousands of dollars of our food without chipping in, we provide her medical insurance for free, and we pay for half her school...I think that deserves us to claim her. Either way we won't get a refund but it makes a HUGE difference in what we owe.

 

[LdiJ]

Ahhhhh ok. So now let me ask you this. What if we claim her on our taxes and tell her that she needs to check that box stating that she is a dependent of someone else, but she doesn't? As in what if she just files her tax return like she did last year so she can get a refund. What will happen then?

She is mad that we want to claim her because then she won't get a refund. My opinion is that she lived here for free, her and her boyfriend ate thousands of dollars of our food without chipping in, we provide her medical insurance for free, and we pay for half her school...I think that deserves us to claim her. Either way we won't get a refund but it makes a HUGE difference in what we owe.

Well, what will happen is that either you or she won't be able to file electronically, and the IRS will decide who gets to pay back the excess refund, and it won't be you, it will be your daughter. If she files first and doesn't check the box then you cannot file electronically, you will have to file paper. If you file first and then she tries to file without checking the box, she would have to file a paper return, or check the box and resubmit her return.

 

[kb1179]

Well, what will happen is that either you or she won't be able to file electronically, and the IRS will decide who gets to pay back the excess refund, and it won't be you, it will be your daughter. If she files first and doesn't check the box then you cannot file electronically, you will have to file paper. If you file first and then she tries to file without checking the box, she would have to file a paper return, or check the box and resubmit her return.

Ok. Thank you so much for your help. What is your personal and professional opinion of the situation?

 

[LdiJ]

Ok. Thank you so much for your help. What is your personal and professional opinion of the situation?

As a person I understand that young people often don't think straight about these kinds of things and end up behaving a bit like a spoiled brat when they think they are entitled to something that they are not.

As a tax professional my opinion is that she is your dependent for tax purposes and you absolutely have the right to claim her.

 

[kb1179]

As a person I understand that young people often don't think straight about these kinds of things and end up behaving a bit like a spoiled brat when they think they are entitled to something that they are not.

As a tax professional my opinion is that she is your dependent for tax purposes and you absolutely have the right to claim her.

Thank you. You and I have the same opinion. She says that my husband and I are being selfish by wanting to claim her. My husband agrees with her. Well more like doesn't want to make the princess mad is more like it.

 

[OHRoadwarrior]

I suggest you allow her to calculate the difference between both options and give it to her as a gift. You will save more at your tax rate. Take it out of her inheritance.

 

[LdiJ]

I suggest you allow her to calculate the difference between both options and give it to her as a gift. You will save more at your tax rate. Take it out of her inheritance.

That is actually what many parents do when this kind of situation arises. Legally they are not required to do that at all, of course. However, it does tend to keep the peace.

 

[kb1179]

That's an option that is being explored. She was extremely selfish and lazy when she did live here. It was like pulling teeth to get her to help out and do the dishes every once in awhile. So I'm not feeling particularly generous at this point.