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