Full time student with part time work

Forum|Forum|3 years ago
April 5, 2023
2 replies
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Hello,

My daughter was a full time University student in 2022 - she worked part time the whole year and her W2 Wages, Tips and other comp amounted to 13808.63. Does she need to file an individual tax return?

tmunoz

It depends. It does sound like she may be required to file a federal return this year but you may be claiming her as a dependent. The Education Credit for qualifying education expenses will go with you if you claim her and with her if you do not.

This TurboTax Help article lists the exceptions when she would be required to file a federal return.

If she is required to file a return but is listed as a dependent on your return, in the My Info section, she will answer Yes to Can you be claimed as a dependent on another return?, and Yes, I will be claimed.

Hal_Al

Employee

Q. Does she need to file an individual tax return?

A. Yes.

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2022 if he had any of the following:

Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022).
Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1150 (2022)
Unearned income over $400 (2022) and gross income of more than $1150 (2022)
Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
Other self employment income over $432, including money on a form 1099-NEC

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.

Hal_Al

Employee

Your next question might be: can you still claim her as a dependent when she has that much income and is filing her own tax return.

The answer is yes.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on himself.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $12,950), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section. TT will check that box on form 1040.

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased.

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html