My kid had an intern work in 2022, She got W2 with more than 1 thousand income, withhold social security and medicare ,CASDI. Should she file her tax return for 2022 independently or should she file with her parents (17yrs old) Consider her college FA, which way is better? If she wants to buy IRA with this income, which way is better?
My kid had an intern work in 2022, She got W2 with more than 1 thousand income, withhold social security and medicare ,CASDI.
Should she file her tax return for 2022 independently or should she file with her parents (17yrs old)
Consider her college FA, which way is better?
If she wants to buy IRA with this income, which way is better?
My kid had an intern work in 2022, She got W2 with more than 1 thousand income, withhold social security and medicare ,CASDI.
#1 Should she file her tax return for 2022 independently or should she file with her parents (17yrs old)
She can file her own tax return. and by filing her own tax return she will enjoy her own standard deduction as dependent. see https://www.irs.gov/publications/p501#en_US_2022_publink1000221069?
Use freefile on IRS website. https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free?
You can still claim her as dependent.
#2 Consider her college FA, which way is better?
Doesn't matter. Her $1000 has to be counted as her income no matter how she files the tax. It matters very little.
#3 If she wants to buy IRA with this income, which way is better?
She can put all her earned income into ROTH IRA, because her income tax rate is 0% (see answer #1)
她挣来的钱自己去放ROTH IRA，在感情上是她的钱，这个叫做mental accounting。这样教育她要存钱。
父母给她零花钱，本来就是应该给的，没有必要多给，要多给也可以，但是不要和她的earned income联系起来。
可以今年把这个收入单独给孩子报税，但是等她满足单独开IRA的年级再转IRA 账户？
谢谢
https://www.fidelity.com/learning-center/personal-finance/retirement/turbocharge-childs-retirement#:~:text=Minors%20cannot%20generally%20open%20brokerage,contributions%2C%20investments%2C%20and%20distributions.
如果只需要报联邦税，有些软件是免费的
比如加州单身在两万元以上才必须报税。
如果你孩子有州税预扣的话，那么拿一张州税表用笔填一下寄过去好了，不需要用软件。不就一千元的收入吗。