wnaplay1647545503 Posted February 7, 2015 Report Share Posted February 7, 2015 This year I believe we are eligible for something called earned income credit. I have 3 children currently aged 19, 15 and 13. I believe my youngest will qualify but what about my 19 year old that lived with me all of 2014(although he worked but only a few hrs a week and made hardly anything he did receive a w2) and was a high school student until he graduated last year. Lastly how do I deal with my sons taxes? IIRC when I was younger it was more beneficial to my parents taxes that they claimed me and just paid me the money I would have received had I of filed on my own. Quote Link to comment Share on other sites More sharing options...
Turbs3000 Posted February 8, 2015 Report Share Posted February 8, 2015 Was the 19 yr old a full time student in 2014? He would need to be in order to qualify but you should definitely claim him on your taxes til he is 25 or starts making some serious coin. Then he just files a 1040 ez as and dependant and will probably see a tiny return but it's atleast $3400 difference for you. Also this is assuming your family made less then 52k last year Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted February 8, 2015 Author Report Share Posted February 8, 2015 He moved out last month so I dont know if I will he claiming him anymore. He was a fulltime high school student last year for 5 months. Where are you getting that dollar figure from? Quote Link to comment Share on other sites More sharing options...
gillbot Posted February 8, 2015 Report Share Posted February 8, 2015 If you claim him, when he files he'll get nothing back most likely. Quote Link to comment Share on other sites More sharing options...
Turbs3000 Posted February 8, 2015 Report Share Posted February 8, 2015 The tax programs will walk you through most of this now a days but you are going to be able to decrease your taxable income by about 5k by having him as a dependent, 3 children, plus 2 under 17 for the child credit, plus 3 on the income tax credit. plus he technically was a dependent from what you are saying. So yes, his few hundred dollar refund will end up being like $100 or less instead but it will make a big difference to you, especially if your income is 1099 or additional income. So assuming you 2 aren't in a huge fight or something then you should definitely claim him. Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted February 21, 2015 Author Report Share Posted February 21, 2015 So my son received his first w2 and made more than I expected him to around $12k while livinh at home and attending hs. How does that affect my taxes? Should I even include him or have him file seperately? Next I work as an independent contractor often waiting 30 days to get paid. The work I perform in deember wont be paid until january or february of the next year. Which year is this applied to when worked or when paid? Quote Link to comment Share on other sites More sharing options...
iwashmycar Posted February 21, 2015 Report Share Posted February 21, 2015 PAID. If you havent been paid it isnt income! My dad claimed me up until I was done with college. I had small weekend jobs but it was in his best interest to claim me. Plus he helped out with college as best as he could so I certainly didnt feel bad about it. Now if your son is out on his own, simply working and earning his own income, then he should probably claim himself. Every situation is different. EDIT: reread...if he was under your roof I think you should still claim him. It is best for your return and just makes sense. Side rant - I was stoked for tax time this year since we had our first child back in June. Turns out they're worth a whopping 1000 deduction...I was under some thought that each dependent was worth a huge amount lol. Oh well! At least I have my student loan interest! Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 21, 2015 Report Share Posted February 21, 2015 Claim the kid. No brainier. Also it sounds like he lived with you full time? If he was in HS he is considered a full time student no matter what he made. If you get audited, that's a transcript away from proven. As for your S/E income, its not income until it his your P/L. Also, none of your income matters until EOY anyways when the write off party begins and you pay against whatever your net ends up being on your Sch C (if you file it there) Quote Link to comment Share on other sites More sharing options...
wnaplay1647545503 Posted February 21, 2015 Author Report Share Posted February 21, 2015 Se/ pl? I should have clarified, my son is hoping to get a tax refund of some kind. Is he entitled to a refund if I claim him or would he get more if he filed alone. I only worked2 months last year and my wifes cake shop went in the negative as she was dealing with her cancer stuff all year. I earned what I feel is enough for the earned income credit which I am hoping to get but I have never met the requirements until this year. I dont itemize if that means anything. Quote Link to comment Share on other sites More sharing options...
Turbs3000 Posted February 21, 2015 Report Share Posted February 21, 2015 PAID. If you havent been paid it isnt income! My dad claimed me up until I was done with college. I had small weekend jobs but it was in his best interest to claim me. Plus he helped out with college as best as he could so I certainly didnt feel bad about it. Now if your son is out on his own, simply working and earning his own income, then he should probably claim himself. Every situation is different. EDIT: reread...if he was under your roof I think you should still claim him. It is best for your return and just makes sense. Side rant - I was stoked for tax time this year since we had our first child back in June. Turns out they're worth a whopping 1000 deduction...I was under some thought that each dependent was worth a huge amount lol. Oh well! At least I have my student loan interest! They are worth 3800 + 1000 + more depending on your income. Plus all those hospital bills, doc visits, on visits are all deductible. Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 22, 2015 Report Share Posted February 22, 2015 Se/ pl? I should have clarified, my son is hoping to get a tax refund of some kind. Is he entitled to a refund if I claim him or would he get more if he filed alone. I only worked2 months last year and my wifes cake shop went in the negative as she was dealing with her cancer stuff all year. I earned what I feel is enough for the earned income credit which I am hoping to get but I have never met the requirements until this year. I dont itemize if that means anything. You should honestly just hand your paperwork to a CPA, or at minimum someone who works for an HR block type outfit to have the "which way is better" question answered. It about impossible to answer that without seeing everything. Quote Link to comment Share on other sites More sharing options...
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