CA Filing Requirement for Taxpayer Dependents with Earned Income - Spidell

CA Filing Requirement for Taxpayer Dependents with Earned Income

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Message Board CA Filing Requirement for Taxpayer Dependents with Earned Income

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    • #220090
      Riccardo Vallejo
      Participant

      Hello,

      Does anyone have references pointing to or specific examples on the filing requirement for child dependents that have earned income for 2019. We have a taxpayer whose child is in college. They worked part time and had earnings of about $8900.00 for the year. We can see clearly there is no filing requirement for the federal return; unless, they had withholdings and want the refund.

      Thanks for any assistance here.

    • #220300
      Mark Bole
      Participant

      It’s easy to find in the Form 540 booklet, did you check there first?  Dependents of another person are required to file if either California gross income or AGI is “more than your standard deduction (Use the California Standard Deduction Worksheet for Dependents“.  There is a short worksheet provided for determining the standard deduction for a dependent.

      Pre-TCJA, your client’s child would have had a federal filing requirement, and since CA did not conform to most of TCJA, it makes sense they would most likely have a CA filing requirement too, even in 2019.  I haven’t encountered it in a while, but sometimes there is even CA AMT for the dependent in this situation, as the AMT exemption for a dependent has a special calculation.

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