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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2190
Experience:  IRS licensed Enrolled Agent and tax instructor
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Can a minor who is claimed as a dependent still receive a

Customer Question

can a minor who is claimed as a dependent still receive a tax refund from a part-time job?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I claimed my 17 year old as a dependent and received the child tax credit for her. By tax time she was living with her dad, so he helped her with her tax forms. He told her that she couldn't get a refund on the taxes she paid from her part time job because I claimed her, and that I owe her the $500 she would have gotten if I hadn't claimed her.
JA: When we are ready I'll take you to the appropriate web page.
Customer: Any thoughts?
JA: Is there anything else important you think the Accountant should know?
Customer: She got a return the year before. I believe she was claimed on his return that year.
Submitted: 23 days ago.
Category: Tax
Expert:  emc011075 replied 23 days ago.

Hi. My name is ***** ***** I will be happy to help you.

Yes, dependent can get a refund, that's not a problem. But depending on her tax situation she may not have a refund this this. Since you are claiming her as your dependent, she cannot reduce her income by exemption because you are claiming her exemption. Maybe she made more money than last year or had less withheld from her paycheck. It also depends what type of work she did. As independent contractor (1099) she will owe more taxes than working as employee (W2). Those are the most common reasons why dependents do not have a refund or even owe taxes.

Customer: replied 23 days ago.
She works in a restaurant owned by other people not related to us.
She only got back about $150 the year before, so she probably did earn quite a bit more.
Expert:  emc011075 replied 23 days ago.

That's possible. Being claimed as dependent does not automatically mean she will not have any taxable income. If her total income was more than 6,300 she had taxable income. In 10% tax bracket, for every $100 of taxable income she owed $10 in tax. With tips she may not had enough withheld to cover her liability.

Expert:  emc011075 replied 23 days ago.

You taking her exemption deduction, she lost about $400.

Customer: replied 23 days ago.
The previous year she earned about $4000 and got $114 back. Would that have fit with her being claimed by Dad last year?
Expert:  emc011075 replied 23 days ago.

If she only made 4K, she did not have any taxable income and she got back all her withholding. The standard deduction would reduce her taxable income to 0, which means no taxes.

Customer: replied 23 days ago.
the real difference was that she earned more, not that I did something to mess her up and I have her money. Dad had told her it was included in my refund and told her to get it from me.
Expert:  emc011075 replied 23 days ago.

Lets say she made $9000 this year. Standard deduction reduced her taxable income by $6,300 and remaining $2,700 was be taxed at 10%, which means she owed $270. If you did not claim her, she could claim her own exemption and reduced the taxable income by another $4000 to 0. Which means she would not have any taxable income, no taxes and she would get all her withholding back. Claiming her you reduced her refund by $270 in that example.

Expert:  emc011075 replied 23 days ago.

Not claiming her own exemption in 10% tax bracket meant she lost up to $400. (4K x 10%). On the other hand, the exemption you claimed for her reduced your income by $4000, which means you gained between $400 and $1000 depending on your tax bracket: $400 in 10% tax bracket, $600 in 15% tax bracket or $1000 in 25% tax bracket.

Customer: replied 23 days ago.
O.K. That makes more sense. She got the impression that by my claiming her, her money was given to me, so I needed to pass it on to her out of my check. I got the deduction because I provided her home for half the year, and court ordered that I would be the one to claim her that year.
Expert:  emc011075 replied 23 days ago.

You supported her so you have all rights to claim her exemption. Also, most likely taking the deduction on your tax return instead of her resulted in larger refund for you than she would get if she claimed herself. It all depends on your tax bracket. The higher tax bracket, the larger benefit.

Customer: replied 23 days ago.
Thanks. I think this will help clear some things up.
Expert:  emc011075 replied 23 days ago.

You're welcome. Is there anything else I can help you with today?

You can use an online calculator to figure out how much refund she would get if you didn't claim her. But it would not be more than $400. Just check the box that she is/ she is not claimed as dependent to see the difference.

Anyway, if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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