My daughter just turned 17 on dec 27 and has been working at her job for around 3 months. But she has had other job last year.
She is a dependent on my taxes and I recieve Earned Income Credit for her and her son.
My question is does she file taxes this year, She thinks she may have made over 4 or 5 thousand but has not gotten her W2's back yet.
My other quesion is how will it effect my Earned Income Credit? I know she is still a dependent on my taxes this year but I want to know if my Earned Income Credit will go down.?
Also, what are the different amount that you have to make with federal and/or state. ?
2007-01-21 00:03:49 · 7 answers · asked by LadyCatherine 7 in Business & Finance ➔ Taxes ➔ United States
At 17 you can still claim her as a dependent, as well as her son. that means she cannot take EIC, but you can.
I am going to assume that she does not have unearned income of more than $850. If my assumption is correct, she should wait until she gets her W-2's and add up the Box 1's. If it is more than $5,150 she must file. If it is less than $5,150 she should add up the Box 2's. That will tell her what her federal refund is. She can file electronically for free at www.irs.gov (click on the efile icon).
State returns are another matter. Different states have different rules. As you have not said what state you are in, I cannot advise any further on that, but it is something to look into.
2007-01-21 00:16:36 · answer #1 · answered by skip 6 · 1⤊ 0⤋
1) If she made less than $500, I wouldn't bother filing taxes. However, you're saying she is claiming to have made several thousand dollars, so I would definitely file taxes in that case. Just wait for her W2s to come in and see what her income amount is.
2) As far as I know, as long as you are filing her as a dependent under you, it will not effect your taxes, regardless of whether or not she is working.
2007-01-21 00:08:40 · answer #2 · answered by uabsupercow 2 · 1⤊ 0⤋
She's 17 and made 4 or 5,000 in 3 months. That's alot of money in a very short time. First are the numbers correct? If so then yes she would have to file.
2007-01-21 00:07:19 · answer #3 · answered by redwidow 5 · 0⤊ 1⤋
Yes, a good place to start would be by calling the IRS to make sure you're getting correct information. Also, keep in mind that if she's planning on attending college, it is more beneficial for her to begin filing her own taxes - she'll qualify for lots more financial aid that way.
2007-01-21 00:16:04 · answer #4 · answered by Marvelissa 4 · 1⤊ 0⤋
Your best bet is to call the IRS, you don't have to tell them who you are and they are very nice to talk to.
My recommendation: She doesn't have to file until her wages reach $6,000. Yes, you can claim her until she is 18 or 19 if still in high school.
Your question is not clear about the "different amount with federal or state". Sorry. Again, you can call the IRS 800# in your area (in your local phone book).
Good Luck,,,smile.
2007-01-21 00:10:31 · answer #5 · answered by Barbara 5 · 1⤊ 1⤋
Whether she has to file depends on how much she made. Whether it is beneficial for her to file depends if they took taxs out. Whether she is better off filing as her own dependent, and/ or claiming her child depends which way you get more back!
2007-01-21 00:11:22 · answer #6 · answered by Anarchy99 7 · 0⤊ 1⤋
Your daughter will get EIC for HER son, and you will get EIC for her.
2007-01-21 00:07:22 · answer #7 · answered by Kelly H 4 · 1⤊ 0⤋