Many people have a misconception that when their children begin working, they can no longer claim them as dependents, but that’s not true.
let’s say you have a 16 year old who just started their first job this past year. when january rolls around, they receive their first ever w-2. now it’s tax season and you’re starting to think about filing. what do you do?
well, as the parent it’s important to know that your child’s w-2 does not go on your tax return – it goes under theirs.
if you’re still paying at least half of their support expenses, your child is still considered your dependent even if they’re now working.
but remember: their income isn’t going to you, it’s going to them. because they’re earning money (but are still supported by you), they should file a dependent tax return.