Taxes, College, Part time jobs, OH MY!

[BlsdMama]

I'm a bit lost.

 

So our oldest kiddos are working.  They did detassling this year, picking up rocks, and are now ready to take on part time "real" jobs.

 

For the previous experiences we had them file EXEMPT.  We claim them (ages 19yo and 16yo) and if we paid a bit more in taxes or reduced a  federal refund a bit, that was fine.

 

However, as both will have part time jobs and that could really add up, we aren't sure what they should do?

 

If they claim one, can we still claim them?  Must they file themselves?  We're worried about impacting scholarships as well.

 

I welcome any links, etc.

 

 

[The Girls' Mom]

Following, as this is our situation this year too.

[Random]

Here is an IRS pub that might help.

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Filing-Requirements,-Status,-Dependents,-Exemptions/Dependents-&-Exemptions/Dependents-&-Exemptions-2

 

I assume they are still living with you? 

They will still file their own tax returns, and probably get everything they had withheld back, but this depends on how much they earn.  If they know approximately how much they will earn at their part time jobs, they can fill out the worksheets provided along with form W4.

 

You can also read in Pub 504:

http://www.irs.gov/pub/irs-pdf/p501.pdf

 

 

 

[Laurel-in-CA]

Our college kids who are living at home and/or receive >1/2 of their support from mom and dad file their own taxes as zero dependents, not head of household, noting that they are a dependent on someone else's tax return (ours). We claim them on our tax return as dependent but because they've filed their own taxes we don't count their income and we get their education deduction.

[Frances]

Our college kids who are living at home and/or receive >1/2 of their support from mom and dad file their own taxes as zero dependents, not head of household, noting that they are a dependent on someone else's tax return (ours). We claim them on our tax return as dependent but because they've filed their own taxes we don't count their income and we get their education deduction.

This is what we do because technically our college student meets the definition of a dependent. Unfortunately he has to pay fairly high income taxes because his part-time work is quite lucrative and we live in a state with no sales tax but high income taxes.

[LizzyBee]

I'm a bit lost.

 

So our oldest kiddos are working.  They did detassling this year, picking up rocks, and are now ready to take on part time "real" jobs.

 

For the previous experiences we had them file EXEMPT.  We claim them (ages 19yo and 16yo) and if we paid a bit more in taxes or reduced a  federal refund a bit, that was fine.

 

However, as both will have part time jobs and that could really add up, we aren't sure what they should do?

 

If they claim one, can we still claim them?  Must they file themselves?  We're worried about impacting scholarships as well.

 

I welcome any links, etc.

 

Their earned income has to be reported on their own returns if they meet the income threshold for filing. You can only include their income on your return (on Form 8814) if their only income is from interest and dividends. But as long as they qualify as your dependents, you continue to claim the dependency exemptions, and they file their returns as dependents of another taxpayer.

 

If their income might be small enough that they don't have to file a return ($6,300 if they only have earned income), you can continue to have them mark the EXEMPT box on the withholding form (W-4, I think?).