How much can a dependent make in a year before they have to file their own return?

Question

I am a business teacher at a high school and we are going over a chapter on basic taxes. The question came up as to how much students could earn during a summer job but still not have to file their own return because their parents can claim them on the parents' return.

Answer 1

Assuming the money is from a job where social security and medicare are withheld, a dependent can earn up to $5350 for 2007 and not have to file a federal return - the limit goes up a little every year.

But be sure to tell them that if they have anything withheld for federal income tax, even if they don't make enough to have to file, they should file so they can get their money refunded - if they don't file, they lose whatever was withheld.

Also, most states have an income tax, and even though they aren't required to file a federal return, they might have to file a state return - the limits vary by state. In PA for example if they made over $33 they'd have to file - most states have higher limits.

Answer 2

A student can be required to file a tax return even though he is a dependent.

If the child only has wages for income, and is a dependent, he can earn up to $5,350 and not be required to file a tax return. If he is self-employed he is required to file when he earns $400 or more.

However he would want to file a tax return in order to get the taxes that were withheld refunded.

Answer 3

For federal they could earn up to the standard deduction amount, which is $5,350 for 2007. For state, it would depend on what state you are talking about. Social security and medicare taxes are withheld from their paycheck no matter how little they make.

Answer 4

regrettably, because of the fact her income is extra suitable than $3,six hundred, you may't declare her as a based (see table 3-a million, internet site 26, Pub 17). because her income is under $8,950, she isn't required to document (see table a million-a million, internet site 5, Pub 17); even nonetheless, she could document besides to get a reimbursement of the quantity in container 2 of her W-2.