I want to know if he needs to file return and pay taxes? We (my husband & I) file joint return and we fall in 30% tax bracket. If we include him on our return, does that mean we need to pay 30% tax on his income too? Or he should file separately?
2007-08-30 11:13:20 · 5 answers · asked by Mary L 1 in Business & Finance ➔ Taxes ➔ United States
You can't include his earned income on your return even if you wanted to. He'll file his own return if any filing is done on his income. If he makes less than $5350 for the year, he doesn't have to file a federal return, although if anything is withheld for federal income taxes, he should file to get that refunded to him. If he makes over $5350, then he is required to file, and will have some tax liability.
You can still claim him as a dependent assuming he isn't providing over half of his own support. He will note on his return that he can be claimed as a dependent, and won't get an exemption for himself.
2007-08-30 12:35:39 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
Since this will be your child's earned income, he must file his own separate return. You can't include his income in your income. He will get standard deduction of $5,350, so he may not have any taxable income.
This is from IRS publication:
"If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends) and certain other conditions are met, a parent can elect to include the child's income on the parent's return. If this election is made, the child does not have to file a return."
2007-08-30 14:18:14 · answer #2 · answered by MukatA 6 · 0⤊ 0⤋
he will need to file a return and pay taxes. however, since he is still mostly dependent on you, you can claim him as a dependant. it should be explained somewhere on the forms. my parents did this with my brothers and i when we got jobs up until the day we moved out. i know i wasnt much help, but i do know he will need to file because yes, he has an income. he can file with yours, im just not sure of the process.
edit: thank you dr deth, i was trying to say what you did, i just didnt know how to put it into words. i know how to do my taxes, im just horrible at explaining it to other people, lol
2007-08-30 11:22:10 · answer #3 · answered by Ashley M 7 · 1⤊ 0⤋
Ashley's first part is correct. You claim him and use his exemption on your return. He would file his own return, but would not be able to claim his personal exemption, so he might have taxable income. Just make sure his w-4 says single - 0 . He won't owe any tax come tax return time then
2007-08-30 12:22:02 · answer #4 · answered by Anonymous · 2⤊ 0⤋
he should have one withholding on his w-4; and he should file state and federal taxes--he will get most of it back if he doesnt make that much money. and grocery stores (at least the big chains) dont pay very well, so unless he works like a maniac, he shouldnt have to pay much
2007-08-30 11:30:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
he can file on his own
2007-08-30 11:26:04 · answer #6 · answered by Nicole 3 · 0⤊ 0⤋