Taxes and Teen Jobs

[heybrad]

I have a just turned 18 year old daughter who had her first job this past year. Does anyone have any experience as far as still claiming a teen as a dependent and what she can then claim on her taxes? I'm pretty sure she's exempt anyways because she didn't earn that much and she should in fact have a small refund coming. I just don't want to lose her as a dependent on my return. I'm planning on doing my own taxes this year and I'm thinking she may just have an option that says, "Can someone else claim you" when we do hers.

[cuervo72]

I have a just turned 18 year old daughter

heybrad'sdaughter

[cuervo72]

https://turbotax.intuit.com/tax-tools/tax-tips/Family/At-What-Income-Does-a-Minor-Have-to-File-an-Income-Tax-Return-/INF14178.html

http://www.nolo.com/legal-encyclopedia/when-does-your-child-have-file-tax-return.html

I can't recall getting a refund when I worked. Guessing my parents didn't file...

[heybrad]

Thanks Cuervo! She had money withheld so we definitely need to file but I'm pretty sure she's getting it all back.

[PilotMan]

Not a tax professional.

Here's my experience. You can still claim her as your dependent as long as on her tax calculations she notes that she can be claimed as a dependent on someone elses taxes. I think Turbo Tax takes care of that automatically. It will mean less of a refund for her. As for tax exempt I'm thinking that the threshold for exempt status is just a few hundred dollars.

On further checking:
Kiddie Tax. For 2014, the threshold for the kiddie tax – meaning the amount a child can take home without paying any federal income tax – remains at $1,000.

IRS Announces 2014 Tax Brackets, Standard Deduction Amounts And More - Forbes (http://www.forbes.com/sites/kellyphillipserb/2013/10/31/irs-announces-2014-tax-brackets-standard-deduction-amounts-and-more/)

[Breeze]

My dad always had me claim 0 dependents when I worked Summer jobs so that this wouldn't be an issue. Doesn't help you this year, but maybe next year.

[britrock88]

Yeah, you can still claim her as a dependent, and she'll need to acknowledge that you can claim her as a dependent on her own return. Then her income (above the exemption for people in her circumstance) will be taxable just like your income, and her withholding will be applied to it as normal.

All in all, nothing that difficult to manage, but don't expect a windfall on her part.