What would you do?

[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?

[ecb34691]

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.

[DonPriebe]

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.

[erchess]

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.

[Burke]

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.

[FEDUKE404]

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

[Black Bart]

Are you thinking

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?

[OtisMozzetti]

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.

[taxea]

I would get some tax training taxea