Preparing a Dependent’s Tax Return

There will inevitably come a time when you will be wondering if your high-school or college enrolled child should or needs to file their own tax return. This is based on the money they may have earned working summer jobs or part-time or what have you. They are still dependants, so you are still claiming the exemptions they entitle you to on your own return. So, how does a dependant prepare a tax return?

Here we go. The first thing that needs to be addressed is that dependents cannot claim their own personal exemption, and sometimes they have a lower standard deduction. But otherwise the math on their tax return works the same. Preparing your dependant’s taxes using Form 1040-EZ is pretty straightforward. Since they are a dependent, the box on Line 5 that is indicated as “you” is going to be checked. This indicates that your son/daughter/grandchild can be claimed as a dependent. Then all you need to do is calculate their standard deduction, which can be worked out on the second page of the 1040EZ tax form.

The remaining amount of the form is just math used to calculate any tax refund the dependant may have accrued.

If only our returns were that easy.