Do I need to file tax return as dependent in 2024?

Forum|Forum|1 year ago
March 9, 2025
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I am trying to understand whether my daughter needs to file tax return in 2024, I am claiming her as a dependent on my return. She made $4000 earned income and $400 from selling stocks (unearned income), the info I found in very confusing.

IRS publication https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return says that gross income ($4400 = $4000 + $400) was more than earned income plus $450, which is $4450, then filing is required. So based on this filing is not required in her case.

TurboTax publication https://ttlc.intuit.com/content/p_cg_tt_na_cas_na_article:L08E2JVAg_US_en_US says the same, but it is plus $400 not $450 as in IRS.

If to run IRS Interactive Tax Assistant https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return then it says filing is required as "Your return's gross income is equal to, or exceeds, $4,350.00." It seems it adds $350 to the earned income and not $450 as in their (IRS) publication.

Question is what information is correct and whether tax return is required in this situation?

Thank you

Tax Advice

Best answer by DoninGA

Since her unearned income is less than $1,300 and her earned income is less than $14,600 she is not required to file a tax return.

The IRS website you posted has a table for Dependent Income - https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return

If federal income taxes were withheld from her wages as a W-2 employee she should file to get a tax refund. If the $4,000 was not from wages as W-2 employee but from self-employment she is required to file since her self-employment income is $400 or more. If this is the case then she needs to use a Schedule C for the income and expenses.

If for any reason she files a tax return make sure that she indicates on her tax return that she can be claimed as a dependent.