Tax Refund for Dependent Child Making $12,000 a year?
the "kiddie tax" only applies to UNEARNED income such as interest on a bank account or something. You are EARNING this income by working for it as an intern, so it counts as EARNED income. You will be required to report it on your own income tax return and your father should NOT report any of it. Your tax return will have $12,000 of income. You'll get a standard deduction of $5800 leaving you with $6200 taxable and a federal tax liability of about $620. If your federal income tax withheld is more than that, you'll get the difference refunded when you file. If FIT withheld is less, you'll owe the difference when you file. Note: social security and medicare withholding is separate. It is NOT part of the federal income tax withholding so it doesn't count toward your federal income tax liability and its never refunded. The rule for your dad to claim you as a "qualifying child" requires that you do not provide more than half of your own support. Take a look at publication 501 and the support worksheets to make sure you meet this test and be prepared to prove it in case your dad is audited.
by SmartA$$ - 2 hours ago
Kiddie tax applies to investment income, not to earned income, so doesn't apply here. If you put single/zero allowances on your W-4, or maybe even if you put a higher number, they will likely withhold more than you owe so you should get a refund if that's your only income for the year. You will need to file a return whether or not you have a refund coming.
by Judy - 2 hours ago
Your internship is earned income. Any refund entirely depends on how much is withheld.
by Pascal the Gambler - 2 hours ago
The $12,000 is earned income. You are not entitled to the "earned income credit". For an unmarried dependent making $12,000 per year, with no other income, the government keeps all the medicare and SS taxes and approximately $630 of the income tax. If more than this was withheld, then you are eligible for a refund.
by StephenWeinstein - 2 hours ago
To correct some of the misinformation in some posts, you aren't too old for kiddie tax to apply. What is applicable is you made over half the current personal exemption amount in earned income, so that is why it doesn't apply to your unearned income. Also, the income you make is not the qualifier, it is how much you actually spend on your own support regardless of source as long as it's yours, that is important in determining if you are a qualifying child of your father.
by Chas - 2 hours ago
you are too old for the "kiddie tax' as a dependent, which from your description you are, you are not taxed on the first $5800(2011) of your income earned income is working for wages or income from self employment if you make $12000, $6200 will be taxable and that will probably be at least $620 income tax, hopefully your employer is withholding enough to cover that
by tro - 2 hours ago
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