What would you do?

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  • AZ-Tax
    Senior Member
    • Feb 2008
    • 2604

    #1

    What would you do?

    Got a couple with a dependent that has a W2 in 2007. The W2 has no withholding only approx $2K wages. Its not enough wages to generate a stimulus rebate. I was thinking of having the dependent still file a separate tax return but have the couple still claim as a dependent. Then the dependents $2K will not be included in the couples AGI?

    Your toughts?
  • ecb34691
    Senior Member
    • Jun 2005
    • 247

    #2
    Why even file it? The money would never be included on the parents return unless it had the one of the parents SSN on the W-2.

    Comment

    • DonPriebe
      Senior Member
      • Sep 2006
      • 526

      #3
      Why a return for the dependent?

      Got a couple with a dependent that has a W2 in 2007. The W2 has no withholding only approx $2K wages. Its not enough wages to generate a stimulus rebate. I was thinking of having the dependent still file a separate tax return but have the couple still claim as a dependent. Then the dependents $2K will not be included in the couples AGI?
      With only $2K in wages the dependent doesn't seem to have a filing requirement. And with no withholding, why file at all?

      The dependent's $2K of wages don't go on the parents' return in any case.

      Comment

      • erchess
        Senior Member
        • Jan 2007
        • 3513

        #4
        Was there

        withholding for Federal or State Income tax that would be refunded if the dependent files? I personally hate the taxing agencies so much that if the dependent of a client is due even pennies back I will do the returns for free if I have to in order to get them filed. My routine fee for a dependent's return is $26 and that is good for up to two sources of income such as wages from 5 jobs and bank interest.

        Comment

        • Burke
          Senior Member
          • Jan 2008
          • 7068

          #5
          Originally posted by AZ-Tax
          Got a couple with a dependent that has a W2 in 2007. The W2 has no withholding only approx $2K wages. Its not enough wages to generate a stimulus rebate. I was thinking of having the dependent still file a separate tax return but have the couple still claim as a dependent. Then the dependents $2K will not be included in the couples AGI?Your toughts?
          Dependent's income is never included on the parents' return, so it would never show up in their AGI.

          Comment

          • FEDUKE404
            Senior Member
            • May 2007
            • 3646

            #6
            I REALLY must be missing something here....

            1 - The "dependent" would never get a rebate in the first place, regardless of the income level.
            2 - Include dependent's W2 income in parents' wages???????
            3 - Hopefully, the parents have already claimed the dependent anyway.


            The only possible reason I could see to file a tax return, as others have mentioned, is to retrieve any federal and/or state income tax withholding in the presence of an apparent zero taxable income situation.

            FE

            Comment

            • Black Bart
              Senior Member
              • Jun 2005
              • 3357

              #7
              Are you thinking

              Originally posted by AZ-Tax
              Got a couple with a dependent that has a W2 in 2007. The W2 has no withholding only approx $2K wages. Its not enough wages to generate a stimulus rebate. I was thinking of having the dependent still file a separate tax return but have the couple still claim as a dependent. Then the dependents $2K will not be included in the couples AGI?

              Your toughts?
              about kiddie tax?

              Comment

              • OtisMozzetti
                Senior Member
                • Dec 2007
                • 530

                #8
                Would $2000 wages cause a state filing requirement?

                In California, wages over $3516 will cause the dependent to have a STATE filing requirement for 2007. In some other states, the standard deduction amount could be even less and thus the filing requirement amount could be even less. I don't have the AZ instructions handy.

                Comment

                • taxea
                  Senior Member
                  • Nov 2005
                  • 4292

                  #9
                  I would get some tax training taxea
                  Believe nothing you have not personally researched and verified.

                  Comment

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