My 18/19 year-old college son will have income. I would like to help him fund an IRA up to allowable limits. Do I show his income and the contribution on my return?

Forum|Forum|6 years ago
June 1, 2019
4 replies
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I intend to claim him as a dependent, and he will not make enough to have to file his own individual return. It appears I will not have to show his income nor his Roth IRA contribution on my tax return. Which makes me nervous about how it should be properly documented. Perhaps it is safest for him to file his own return, and show that he can be claimed as a dependent on someone else's return. Thanks for your help.

Best answer by rjs

There is no deduction for a contribution to a Roth IRA.

To make an IRA contribution (traditional or Roth) your son would have to have income from working - wages or self-employment. If he has income from working, you cannot report his income on your tax return. If it is reported at all, it has to be on his own tax return.

A Roth IRA contribution does not have to be reported on his tax return, since it is not deductible. If his income is so low that he is not required to file a tax return, then there is no need for him to file because of a Roth IRA contribution.

(There is a retirement savings contributions credit, also called the Saver's Credit, for IRA contributions, including Roth IRA contributions. However, since your son is a student and he is your dependent, he is not eligible for the credit.)

S

SweetieJean

Employee

Will he have earned income, from working or self-employment?

VolvoGirl

Employee

How much did he make? And did he get a W2 or a 1099Misc for it? His income only goes on his return. He may or may not need to file a return at all. If he only got a W2 for under 6,300 he doesn't have to file except to get back any withholding taken out.

If he got a 1099Misc he HAS to file his own return for it no matter how much it is.

rjsAnswer

Employee

There is no deduction for a contribution to a Roth IRA.

To make an IRA contribution (traditional or Roth) your son would have to have income from working - wages or self-employment. If he has income from working, you cannot report his income on your tax return. If it is reported at all, it has to be on his own tax return.

A Roth IRA contribution does not have to be reported on his tax return, since it is not deductible. If his income is so low that he is not required to file a tax return, then there is no need for him to file because of a Roth IRA contribution.

(There is a retirement savings contributions credit, also called the Saver's Credit, for IRA contributions, including Roth IRA contributions. However, since your son is a student and he is your dependent, he is not eligible for the credit.)

R

rndyoung

Employee

He files his own return.

He marks he is a dependent of others.

Then follow the rules for determining if he earned enough to be allowed to take a Roth IRA deduction. (you did not include his compensation)

His compensation would not be included on your return. Investment income is handled differently and I am not addressing that issue. Your question was related to IRA contributions and those require taxable compensation; i.e. earned income.