My son graduated high school in June. Haven't looked at full numbers but he probably made between $10k and $20k this year. He'll for sure be filing his own taxes for 2024. Just wondering what the threshold was when you stopped claiming one.
2wealfth Man said:
Also, make sure your kiddo is doing a Roth IRA contribution even if you have to gift him the $6,500 contribution.
tax day; April 15 2024Mas89 said:
For 2023, what is the deadline to make the kids 6,500 Roth IRA contribution.
JustPanda said:
Yes but they have to have less than 50% support on their own and if you are a dependent on another person's tax return and you are filing your own tax return, your standard deduction can not exceed the greater of $1,250 or the sum of $400 and your individual earned income.
That's what has me confused. I toggled the "is anyone else claiming you as a dependent" on his return; he seemed to get the standard deduction either way.JustPanda said:
Yes but they have to have less than 50% support on their own and if you are a dependent on another person's tax return and you are filing your own tax return, your standard deduction can not exceed the greater of $1,250 or the sum of $400 and your individual earned income.
How are you going to have the FLP distribution be earned income?JustPanda said:
If you gift him the $6,500 it isn't earned income and doesn't qualify for a Roth IRA. Now, if you have a FLP, the FLP could make a distribution which would qualify as income but as written, you're breaking the law if you gift and invest into a Roth w no actual earned income.