Can I Claim My Son as a Dependent if He Works?

Determining whether you can claim your son as a dependent on your tax return is an important consideration for many families, especially when the child has income from employment. This decision impacts your financial strategy and potential tax benefits. Understanding the criteria set by tax authorities ensures compliance and optimizes available deductions.

This article explores key factors influencing dependent claims, focusing on how your son’s employment status may affect your eligibility to claim him.

Age Requirements for Dependent Claims

To qualify as a dependent, a child must be under 19 at the end of the tax year, or under 24 if they are a full-time student for at least five months of the year. This is particularly relevant for parents with children in higher education, as it extends the period during which they can be claimed. Additionally, the child must not provide more than half of their own financial support or file a joint return with a spouse, unless it’s solely to claim a refund. These rules ensure that parents supporting their children’s education can access tax benefits.

Residency and Relationship Rules

A dependent must have lived with you for more than half of the tax year. This ensures the household where the child primarily resides benefits from the dependent claim. Special rules may apply for children of divorced or separated parents, allowing the non-custodial parent to claim the child in certain situations. The dependent must also be your biological child, stepchild, foster child, sibling, or a descendant of any of these, such as a niece or nephew, provided they meet residency and support requirements.

Financial Support Criteria

To claim your son as a dependent, you must provide more than half of his financial support during the tax year. This includes both direct monetary contributions and non-cash support like housing, food, and education. Scholarships are not considered part of the child’s financial support, so they do not affect your ability to claim him. If your son works, his income must be considered in determining whether he provides more than half of his own support. However, earning income alone does not disqualify him as a dependent unless he is financially self-sufficient.

Income Threshold for a Working Dependent

The IRS requires dependents to file their own tax return if their earned income exceeds the standard deduction for a single filer, which is $13,850 for the latest tax year. Unearned income, such as interest or dividends, has a lower filing threshold of $1,250. These thresholds are important for determining whether your son needs to file a return, but they do not affect your ability to claim him as a dependent if all other criteria are met.

When the Child Must File Their Own Return

A dependent must file a tax return if their earned income exceeds the standard deduction, or if unearned income surpasses $1,250. For example, if your son earns $12,000 in wages and also has $1,500 in interest income, he must file a return due to the unearned income threshold. Filing is also required for self-employment income over $400 or taxes owed on unreported tips. Even if not required, filing may still be beneficial to claim a refund of withheld taxes.

Documentation for Claiming a Dependent

Maintaining accurate records is essential when claiming your son as a dependent. Keep documentation of financial support provided, such as receipts for rent, groceries, and tuition, as well as your son’s income records like W-2 forms. For students, retain enrollment verification or Form 1098-T. Divorced or separated parents may need a signed Form 8332 to release the dependency claim to the non-custodial parent. Ensure your son’s Social Security Number is correctly reported on your tax return to avoid processing delays. By adhering to IRS guidelines and keeping thorough records, you can confidently manage the process of claiming a dependent.