When your dependent enters the workforce for the first time, you may wonder how their employment status affects your tax situation. Key factors like their income, college enrollment, and age will impact whether your child still qualifies as a dependent, which can impact your eligibility for various tax credits and deductions. We’ll help you understand if you can claim a dependent who works, or if they need to file their own return.
Key takeaways on claiming a dependent who works
- You can claim a child who works as a dependent if they still meet the requirements to be a qualifying child – including the age, relationship, residency, and support tests.
- You can claim the Child Tax Credit (up to $2,200 per child) even if your child has a job or earns income, as long as they meet the dependent eligibility requirements.
- If they don’t meet the requirements for a qualifying child, they may still meet the requirements for a qualifying relative.
Can I claim my child as a dependent if they work?
Your child can still be claimed as your dependent if they meet these IRS requirements:
- They’re related to you by blood, adoption, or you foster them
- They’re under age 19 (or a full-time student under 24)
- They rely on you for more than half of their financial support
- They live with you for more than half of the year (with some exceptions)
- They’re a US citizen or resident alien, and they have a Social Security number at the time you file your return
- They’re not filing a joint tax return (if your dependent is married)
As long as your child still relies on you for financial support, their employment status won’t affect your ability to claim them as dependent.
Tip: Do you share custody of the child? Make sure you know which parent will claim them as a dependent.
Are there income limits for claiming a dependent who works?
If your dependent is a qualifying child, there is no limit to the amount of income they can earn. Generally, to qualify, the child must meet the specific relationship, age, residency, and support requirements, as described above.
However, if your dependent is classified as a qualifying relative, their gross income must not exceed $5,200 for tax year 2025. For the purposes of determining eligibility, any taxable scholarships should be included in gross income.
Can I claim my child as a dependent if they are over 18?
Yes, if they meet certain criteria, you can claim your child as a dependent even if they are over 18. For instance, if your dependent is a college student full-time, they can qualify as a dependent up to 24 years old. Full-time enrollment typically means that the student takes at least 12 credit hours per semester in college or is considered full-time by their high school.
In addition to age and enrollment status, your child must also meet other dependent eligibility requirements:
- Dependent must live with you for more than half the year
- Dependent must provide less than half of their own support
- If your dependent is legally married, they must not be filing a joint return with a spouse
If you have a child who is permanently and totally disabled and is over the age of 18, you can still claim them as a dependent on your tax return, regardless of their age. This exception applies even if they are not a student. To qualify, your child must live with you, and you must provide most of their financial support.
Does my dependent’s job affect my eligibility for the Child Tax Credit or Earned Income Tax Credit?
Your child must meet all the eligibility requirements for you to claim the Child Tax Credit, which may vary from year to year. Generally, the child must be under age 17 at the end of the tax year, be your dependent, live with you for more than half the year, and have a valid Social Security number. As long as you are still supporting them financially, your dependent’s work status most likely won’t impact eligibility. If your dependent has earned income, it could impact eligibility for the Earned Income Tax Credit (EITC). To qualify for the EITC, your child must meet specific age, income, and residency requirements, and you must meet income limits as the taxpayer.
Can I claim a relative as a dependent?
Yes! A qualifying relative can be an extended family member, like a half-sibling, niece, or nephew. To be considered a qualifying relative, they must meet certain requirements, which are similar to the requirements for a qualifying child:
- Qualifying relative must be related to you as a sibling, parent, grandparent, niece or nephew, aunt or uncle, or step-relative.
- Qualifying relative must be under age 19 (or 24 if they are a full-time student).
- Theyust live with you for more than half the year.
- You must provide at least 50% of their financial support.
Note: The IRS does not allow taxpayers to claim a qualifying relative for the Earned Income Credit. To qualify for the EITC, your dependent must be a qualifying child, which includes your son, daughter, stepchild, adopted child, or foster child.
Can I claim a non-relative as a dependent?
Yes. To claim a non-relative as a dependent, the person must have lived with you all year as a member of your household, earned less than the IRS’s gross income limit, and you must have provided more than half of their financial support during the year.
Should my dependent file their own return if they work?
Depending on how much your child earns, they may not be required to file a federal income tax return. But if they’re having taxes withheld from their paycheck by their employer, they could be entitled to a tax refund–and the only way to get a refund is to file an income tax return.
In this case, they will need to file a return using their name and Social Security number/ITIN.
In addition to federal requirements, your dependent may also need to file a state income tax return, depending on your state’s rules. Most states require a return if the dependent is required to file federally, earns income above the state’s threshold, or wants to claim a refund for state taxes withheld. Be sure to check with your state Department of Revenue for specific filing requirements.
Find out if TaxSlayer Simply Free is right for your dependent.
Tip: Do you have teens who are new to filing taxes? Give them a head start on understanding taxes with our beginner’s tax guide designed specifically for teens!
If my dependent files their own tax return, can I still claim them as a dependent?
Your child can still qualify as a dependent if they file their own taxes. They will need to indicate that someone else claims them as a dependent on their return.
How to claim a dependent on your tax return
Claiming a child as a dependent on your tax forms can provide considerable tax benefits, including potential deductions and credits. Here are the steps on how to file taxes with a dependent that works:
Step. 1 Determine eligibility — To claim your child as a dependent, they must meet specific criteria. Generally, they should pass the relationship, age, residency, and support test to qualify.
Step 2. Choose the correct tax forms — Most individuals file their taxes using IRS Form 1040. When you file with TaxSlayer, we will automatically generate the required forms based on the information you enter about your dependent.
Step 3. Fill out dependent information — When it is time to file your tax return, you’ll need to provide your child’s name, Social Security number, and their relationship to you.
Step 4. Claim eligible credits and deductions — If eligible, you can claim credits like the Child Tax Credit, Earned Income Credit, and Dependent Care Credit, which can significantly reduce your tax liability.
Step 5. Keep good records — It’s important to keep documentation of your child’s residency and any financial support you provide them. This could include paperwork like medical records, health insurance, school attendance records, or other paperwork that shows your address as the dependent’s address. Keeping good records will be helpful if the IRS requests supporting documentation.
If you’re claiming a relative as a dependent, the process is similar to claiming a child, but there are a few additional requirements. The person must either be related to you or live with you all year. They can’t be a qualifying child of another taxpayer. They must have earned less than the IRS’s gross income threshold for the year, and you must have provided more than half of their total financial support.
