Student Filing Income Tax - minimum $ earned?

Parents Forum
1

<p>D who is a college sophomore earned $$$ last year probably totaling more than $3500 between her work study and her summer job. </p>

<p>My questions are:
- is work study earnings reported the same as regular earnings?
- is their a $$ minimum when you must file taxes? </p>

<p>I feel like $3500 was the magic "you need to file" number, but I can't find any verification of this. But am also wondering since part of it is work study. In past years, she had not earned even close to this much $$ so she did not file. (yeah her though for making this much $$!!!!)</p>

<p>Anyone have any guidance or links to appropriate info? Much thanks.</p>

2

<p>I think the magic numbers this year are $5,450 in earned income (a work study job would count) or 900 in unearned income. Here's a link that has some nuances, particularly if a child has some unearned income, it gets a little more complicated:</p>

<p>Publication</a> 929 (2008), Tax Rules for Children and Dependents</p>

3

<p>MarathonMan is correct. Publication 501 is also helpful. </p>

<p>Publication</a> 501 (2008), Exemptions, Standard Deduction, and Filing Information</p>

4

<p>I agree with MM88 and Iderochi.</p>

5

<p>Thanks a bunch. I'll show this to my husband who does our taxes and he can figure out if it is worthwhile for her to file.....</p>

6

<p>There are a few additional things to monitor for WS income. </p>

<ol>
<li><p>Make sure you exclude the income correctly on the FAFSA forms.</p></li>
<li><p>Check if taxes or social security/medicare taxes were withheld. You might have to file to obtain refund.</p></li>
</ol>

7

<p>You may not have to file, however, a tax stimulus refund is dependent on filing a 1040.</p>

8

<p>So let me make sure I have this right… as long as my freshman son’s work study earnings are under the IRS threshold, I should report his earnings on my return by adding them to my earned income number–is this correct??? Thanks for your help.</p>

9

<p>

</p>

<p>Um…no. DO NOT report your child’s income on YOUR tax return.</p>

<p>YOU don’t report someone else’s income on YOUR taxes…unless they are you spouse and you are filing jointly. </p>

<p>You would NOT report your child’s income on your tax return at all EVER. Your child would report it IF he/she is required to file.</p>

<p>I’m not a tax expert…but I believe this is correct.</p>

10

<p>Longprime…are they doing a stimulus refund thing AGAIN for the 2009 tax year? I must have missed the announcement of that one. What is it? And who is eligible?</p>

11

<p>My daughter’s financial aid department always wanted to see her tax returns. There was one year that she didn’t file, but it was something of hassle – a lot easier to give them a copy of a 1040 or 1040EZ than to explain why it didn’t exist. So if there is a W2 I think its best to file – though of course you might want to check to see what sort of documentation is required for financial aid at your own kid’s school. </p>

<p>Work-study income IS taxable, but students usually don’t earn enough to hit the threshold. However, on the FAFSA they get a credit back so that the work-study isn’t counted against them in calculating the EFC.</p>

12

<p>

</p>

<p>There are cases involving <em>unearned</em> income of kids (not what the OP is asking about) that can be reported on the parent’s return using form 8814.<br>
[Publication</a> 929 (2009), Tax Rules for Children and Dependents](<a href=“http://www.irs.gov/publications/p929/ar02.html#en_US_publink1000203802]Publication”>http://www.irs.gov/publications/p929/ar02.html#en_US_publink1000203802)</p>

13

<p>Thumper, I just did my S1’s tax return and Turbotax determined that he was eligible for the $400 credit. Here’s the IRS info on it
[The</a> Making Work Pay Tax Credit](<a href=“http://www.irs.gov/newsroom/article/0,,id=204447,00.html]The”>http://www.irs.gov/newsroom/article/0,,id=204447,00.html)</p>

<p>S2 did not receive the credit according to Turbotax, I think because he’s a dependent on our tax return, whereas S1 is not.</p>

14

<p>Good to see so many people jumping on their income taxes already. We won’t have W-2s for a while but we can always do estimates. Son made about $7,500 this year so son will definitely be filing. I think that the minimum is around the amount of the standard deduction which is around $5,500. It will be interesting doing the state returns.</p>

15

<p>It will be interesting for my D doing state returns too, since she made money at her college location and here at home. I’m going to have to do some reading so I can advise her!</p>

16

<p>DD is in a foreign country, but earning money through a company in the states… what to do…</p>

17

<p>Crap. Does anyone know the limit this year? I made $5507 this year. I’d like to not file a tax return so I don’t have to report that income.</p>

18

<p>You are required to report income whether you file a return or not.</p>

19

<p>Where do you not want to report that income, applicannot? </p>

<p>My D always filed the 1040A even if she earned less than the minimum so she could get any money withheld for federal taxes refunded. I think you can fill out the Form 4 initially to not have any fed income tax withheld, but she never did.</p>

20

<p>Federal Work Study income is subject to federal income tax but not social security and those who have FWS earnings will receive a W-2.
If Federal tax was withheld, of course, one would have to file to get it returned even if there is no tax liability.
If you live in a state with state income tax, your student will probably have to file state income tax as well. My kids who attended college out of state, filed PA income tax. No state income tax was withheld by the college so they needed to pay up. </p>

<p>For 2010 FAFSA - in calculating need, any 2009 FWS earnings are not counted.</p>