My daughter is a waitress and her employer has not counted tips. She will receive a small w-2 I'm sure for the small amount she receives in addition to tips, about $2.14/hr I think. She's 17. Does she file with me or on her own?
2007-01-19 14:18:01 · 5 answers · asked by Sue B 2 in Business & Finance ➔ Careers & Employment
one question on the tax return is "are you claimed as a dependent" on someone else's tax return. my son filed separately from me and due to the small amount he made, he did not have to pay taxes.
2007-01-19 14:24:19 · answer #1 · answered by ... 7 · 0⤊ 0⤋
If she lives with you, you should claim her as a dependant.
Also two things. Does her employer do the same as with all the other waitresses? All waiters/waitresses should claim about the same amount in tips or the IRS will get suspicious. The second is, if the IRS owes her a refund she has nothing to worry about. She can even wait up to three years to file. That way she will get three years of returns all at once. You can only hold a W-2 for three years though. If one goes over three years, she loses that year.
If SHE owes the IRS, she needs to file for that year. Highly doubtful that will happen.
If you are in a position to financially rub her back fairly often, she can have the taxman take more taxes out than they need to so that when she does file, she'll get more money in her refund. It's like putting it in the bank. Just say so on the W-4 form how much more to take out each check. The IRS will be happy to comply.
Some people do that in case they owe at the end of the year and lessen the burden. I don't see that happening to her though. It would just be nice to have a nice check during the first part of the year.
I have been doing this for years. I have more taxes taken out, wait for three years, file for those years, and rake back in MY money.
2007-01-19 14:41:16 · answer #2 · answered by stray cat 4 · 1⤊ 0⤋
I'm pretty sure that she files with you. She will have to pay taxes on the tips that she received.
2007-01-19 14:21:19 · answer #3 · answered by zil28ennov 6 · 0⤊ 0⤋
Depending on how much she earned, you can claim her if it's under a certain amount, I'm not 100% sure but I believe it has to be under 7000
2007-01-19 14:22:10 · answer #4 · answered by sindscorpion 1 · 0⤊ 0⤋
with you if shes under 18
2007-01-19 14:21:55 · answer #5 · answered by topgunpilot22 4 · 0⤊ 0⤋