Tax Return question help please?

Question

My son is 16 years old and he is working part time and he wants to file a seperate tax return... what are the benefits of him doing this? will it help in the future for college?

Please help me I am so confused

Thanks in Advance!

Answer 1

1. Once your son has earned income, you can't elect to include his income with your return. So if he meets filing requirement, he must file a separate return. Or he should file the return to get refund of federal and state income taxes paid by him.

2. His filing status will be Single dependent, unless he provided more than half of his support. So your son will get standard deduction of $5,350 but no personal exemption deduction. You will still claim him as dependent on your return.

3. Filing requirements for a dependent
For Single dependents, you must file a return if any of the following apply.
• Your unearned income was more than $850.
• Your earned income was more than $5,350.
• Your gross income was more than the larger of:
$850, or
Your earned income (up to $5,050) plus $300.

Answer 2

He can file a separate return and possibly get a refund of the taxes withheld. He would file a single with zero exemptions. This would have no effect on your tax return, as you would still list him as your dependent.

If he wants to file a separate return and claim himself, he does not have that option if he can be claimed as a dependent on another person's return. If your son lives with you and does not pay for over 50% of his own support, he cannot claim himself on his tax return. You would be able to claim him as a dependent.

Your son may be confusing "filing a return" and "claiming himself as a dependent".

His filing a separate return and claiming zero exemptions has no impact on his college financial aid. The family income, including his, will determine his eligibility for financial aid.

Answer 3

Its not a benefit but more of a law by the federal government if one has to pay taxes or not as age is not a factor when determining whether or not a person has to pay income tax.

If he makes over a certain amount in a given year, he will have to file an income tax form and pay taxes on the appropriate amount. For 2006, the amount is $5,150.

However, there are other laws that require minors to file even if they earn less than that amount depending on where you live (state wise).

If your son still lives in your household he can still be declared as a dependent when you file your taxes so that your taxes will be also lowered.

Answer 4

If he makes over $5350 for the year, he is REQUIRED to file his own return. If he makes less than that, but has anything withheld for federal income tax, he should file and he'll get back the money that was withheld. Other than that, there's no benefit, or reason to, file a federal return.

Depending on where you live, he might be required to file a state return - rules are often different than those for filing federal.

Answer 5

He can file a return and probably get back all of what was withheld from his pay checks but he should not claim himself. There is a place on the return to state that he is being claimed on another return. You should claim him as a dependent as long as you provide more than half of his support. Almost all young people get bad information from their friends about filing taxes. If he made less than $5000 he will still get back everything that was withheld even if you do claim him. If he made more than that he won't get everything back. You will save much more by claiming him than he will ever get back.

Answer 6

He can file a separate tax return but not claim himself so you still can claim him on yours as a dependent. Depending on what he wants to study in college it could help. It will definitely help if he works before and during college.

Answer 7

If your son had taxes taken from his wages he can file a return to get a refund (if his wages are within limits) you can still claim him as a dependant depending on his earned income. In short, do your homework and you may find you can have it both ways

Answer 8

If he earns over $5,350 he MUST file a return. If he earns less than that he only needs to file if any income tax was withheld from his pay to get that refunded. The requriement to file a tax return is based solely upon his income. Age has nothing to do with it.

When it comes to qualifying for aid for college tuition the entire family income is taken into account. The only way to avoid his income being considered is if he has none.

Answer 9

i'm coping with CIS voucher tax claims each week - and that i say do no longer PANIC. you will locate which you will could pay a nominal fee in tax, and this would be paid over the year, yet what's greater in all probability, in the journey that your accountant is properly worth his salt, you will no longer could pay any taxes. Infact, you will in all probability locate which you're due a rebate. Your accoutant will think approximately any costs which you had in the applicable tax year. those incorporate right here; all automobile costs telephone rates use of domicile shuttle & subsitance charity donations heating hire & expenditures maintenance and renewals subscriptions public and criminal duty insurances no longer forgeting any approaches which you have offered on your commerce, your laptop and your automobile, and any fixture and fittings. It shouldn't take your accountant too long to try this for you (he/she could be turning it around in each week).

Answer 10

Do it three ways. The first way is if you claim your son. The second way is if he claim himself. Another way is for you to claim him on your return and he files his own return but he does not claim himself. By doing the third way, you can claim his exemption and he could probably get all of his tax withholdings back because of his part-time job.