Can I Add My Dependent’s W-2 to My Tax Return?

A common misconception is that a dependent’s W-2 income can be directly added to a parent’s or guardian’s tax return. Dependents are considered separate taxpayers with their own distinct tax obligations. While a dependent’s income affects whether they must file their own return and how they might impact your tax benefits, their W-2 wages are reported on their individual tax form, not yours.

When a Dependent Must File Their Own Tax Return

A dependent must file their own federal income tax return if their income exceeds certain thresholds. For the 2024 tax year, rules vary based on whether the income is earned, unearned, or a combination. Earned income includes wages, salaries, and tips, while unearned income comes from investments like interest and dividends.

A dependent under age 65 and not blind must file a return if their unearned income was more than $1,300. If their earned income was more than $14,600, they also must file. When a dependent has both earned and unearned income, they must file if their gross income (the total of earned and unearned income) was more than the larger of $1,300 or their earned income plus $450, up to a maximum of $14,600.

Even if a dependent’s income does not reach mandatory filing thresholds, they may still choose to file a tax return. This is often done to claim a refund of federal income tax withheld from their paychecks. If a dependent’s W-2 shows federal tax withheld, filing a return is the only way to potentially get that money back.

Claiming a Dependent and Their Income

A dependent’s income influences a parent’s or guardian’s ability to claim them on their tax return. To claim someone as a dependent, they must meet several tests, which vary depending on whether they are a “qualifying child” or a “qualifying relative.” These tests include relationship, age, residency, support, and a joint return test.

The gross income test is important, especially for qualifying relatives. For the 2024 tax year, a qualifying relative must have gross income less than $5,050 to be claimed as a dependent. If a dependent’s W-2 income, combined with other taxable income, exceeds this amount, they cannot be claimed as a qualifying relative. This gross income limit does not apply to a qualifying child, who can earn an unlimited amount of money as long as they do not provide more than half of their own support.

Claiming a dependent can provide various tax benefits for the parent or guardian, such as the Child Tax Credit or the Credit for Other Dependents. For the 2024 tax year, the Child Tax Credit is worth up to $2,000 per qualifying child, with up to $1,700 of this being refundable as the Additional Child Tax Credit if certain earned income thresholds are met. This credit begins to phase out for taxpayers with modified adjusted gross income over $200,000, or $400,000 for those married filing jointly. If a dependent does not qualify for the Child Tax Credit, perhaps due to age or relationship, they might qualify for the Credit for Other Dependents, which is a non-refundable credit worth up to $500.

Information to Include on Your Tax Return for a Dependent

If you claim a dependent on your tax return, specific identifying information about that individual must be provided on your Form 1040. This allows the Internal Revenue Service (IRS) to recognize the dependent for tax purposes and enables you to claim associated credits or deductions. You must include the dependent’s full legal name and their Social Security Number (SSN).

This information is entered in a dedicated section on the first page of Form 1040. For the Child Tax Credit or Credit for Other Dependents, you may also need to attach Schedule 8812, “Credits for Qualifying Children and Other Dependents,” to your return. Providing these details is distinct from reporting the dependent’s income.