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Topic: IRS taxes and dependents  (Read 960 times)

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IRS taxes and dependents
« on: January 18, 2020, 05:31:52 PM »
Ok, so I've pretty much been supporting the Daughter. She's made pin money last year at a 15-hour a week job. I don't have the exact amount of her salary for calendar year 2019, but estimate it to be around $5,000. According to the IRS, she's got to file a tax return. Because she earned more than $4,200 I cannot count her as my dependent on my IRS taxes. Or, that would be the case if we lived in the USA.

Since it was all earned income, she'll be excluding it as foreign earned income, leaving her with a taxable income (by the IRS) of $0. So, if she has an IRS taxable income of $0, does she then qualify as my dependent as far as the IRS goes? No, right? They still consider her as "independent" because she had earned more than $4,200? (Which would be $350 a month - who the hell can live on $350 ANYWHERE in the USA????).



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Re: IRS taxes and dependents
« Reply #1 on: January 18, 2020, 08:17:21 PM »
If she earned $100k in the UK she could exclude it all in the USA and still have $0  taxable income but I really don’t think that qualifies her as a dependent.
Dual USC/UKC living in the UK since May 2016


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Re: IRS taxes and dependents
« Reply #2 on: January 18, 2020, 11:38:02 PM »
Actually, it turns out that she doesn't need to use the foreign earned income exclusion. The standard deduction is $12,200 for a single person. So the extra paperwork is a moot point. She has no tax liability, although she does have to file.

I did some research. IF she was under the $4,200, as long as I paid for half the cost of keeping her (food, rent, utilities,  medical, etc.) she'd be a dependent relative. Which I easily did. If she had income that she put in the bank and did not use for self-support, the amount she put in the bank would not be considered towards her upkeep and would not be used in calculating if I'd paid more than half of her support. But because the amount she earned is over the $350 a month, even though it wasn't spent on her upkeep (most of it is in the bank, where it should be), they consider her independent. Again, seriously, $350 a month makes someone financially  independent? ($12 a day) In what universe?

Oh, well. For next year's tax return, unless we get home and she starts working early on, I'll get my $500 credit and "head of household" status for her when I need it. I wonder if they consider Uni bursaries as income? I ~think~ that if it's paid to the school for fees and the tuition charges it's not. But if it's used for living expenses it is. I think.

Too bad they've done away with the deduction for moving expenses. Or I'd get a job when we get back and deduct 'em.  8)

« Last Edit: January 19, 2020, 12:01:29 AM by Nan D. »


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