I have always helped my daughter file her taxes so she gets her tiny little refund back. My son received his first w-2 this year and he only made $350 and had zero taxes withheld so he will not get a refund. I am thinking of not filing so the IRS doesn't get anymore information than they already have (probably have it all anyway)...is there any reason pro/con to filing for him?

Your son needs to work more

Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

Aggie95 said:

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I have always helped my daughter file her taxes so she gets her tiny little refund back. My son received his first w-2 this year and he only made $350 and had zero taxes withheld so he will not get a refund. I am thinking of not filing so the IRS doesn't get anymore information than they already have (probably have it all anyway)...is there any reason pro/con to filing for him?

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He is not required to file a return with $350 in W-2 income. Probably has a filing requirement on the cash income though.

Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

I've been using turbotax for a long time.

This year I filed taxes for myself, my mom, my 21 year old daughter and 24 year old daughter.

File even if you don't have to file, then they can start filing themselves at some point and they'll have history in TurboTax and you can use that a a training tool to show them how to file for themselves.

Ranger1743 said:

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Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

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He's still well under the required income

Aggie95 said:

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Ranger1743 said:

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Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

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He's still well under the required income

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The cash income would not have been subject to income tax or social security withholding. The filing threshold for income from nonemployee compensation is only $400 or so.

Seems like a great use of IRS resources. Don't people who make like $400 end up getting credits or something that would net to $0 taxes (if not getting money back for free)?

topher06 said:

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Seems like a great use of IRS resources. Don't people who make like $400 end up getting credits or something that would net to $0 taxes (if not getting money back for free)?

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I won't argue IRS resources or efficiency or anything about them! Can't stand the agency at all.

As to your question, the OP is talking about a child, his or her dependent. Many, if not all, credits available to adults are not available to dependents. Plus, the $400 threshold is in terms of self-employment tax. While tax credits, if any were available, offset income tax (in whole or in part), they do not offset self-employment tax.

If your son has student loan debt, the Govt may use his return to determine if they are willing to pay-off $10K or $20K. If you are still claiming him as a dependent, then I think that does not work/count, but if you aren't getting much of a deduction for him, might be worth while for him to file independently to take advantage of the free beer money offered by our Govt to eliminate his student loan debt.

Ranger1743 said:

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Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

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Riiiight. While he's at it make sure to tell the ATF about all the guns you lost in the "boating accident."

one safe place said:

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Aggie95 said:

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Ranger1743 said:

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Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

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He's still well under the required income

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The cash income would not have been subject to income tax or social security withholding. The filing threshold for income from nonemployee compensation is only $400 or so.

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Yes, it would have… via self-employment tax. But it's sounds like he was below the filing requirement.

topher06 said:

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Seems like a great use of IRS resources. Don't people who make like $400 end up getting credits or something that would net to $0 taxes (if not getting money back for free)?

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The only place filing self employment income generates a refund is when there is a dependent child and earned income credit is in play.

Single filers only get earned income credit between 25-65 years old and it won't exceed the SS/Med taxes for self employed.

Cash income. Don't deposit it. Don't talk about it on the internet.

Furlock Bones said:

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Cash income. Don't deposit it. Don't talk about it on the internet.

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aka tax evastion

Aggie95 said:

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I have always helped my daughter file her taxes so she gets her tiny little refund back. My son received his first w-2 this year and he only made $350 and had zero taxes withheld so he will not get a refund. I am thinking of not filing so the IRS doesn't get anymore information than they already have (probably have it all anyway)...is there any reason pro/con to filing for him?

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My only input is having this earned income does make your son eligible for a Roth IRA. It is a great opportunity for parents or grandparent to help give little Johnny some investments and teach them about investing. The deadline for funding a 2022 Roth has passed as it was April 18th, but something to take advantage of in future years.

Ranger1743 said:

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Aggie95 said:

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Fo sho...he worked a lot on a cash basis. Started this w-2 gig late in 2022.

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Not to be that guy, but… cash income requires taxes to be paid, just like any other income.

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gigemhilo said:

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Furlock Bones said:

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Cash income. Don't deposit it. Don't talk about it on the internet.

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aka tax evastion

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yea finally some actual lucrative discussion on this board