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Level 4
August 3, 2021

Filing federal 1040 for a dependent but not filing state return

  • August 3, 2021
  • 3 replies
  • 10 views

A client has a child (college student) that worked part-time.  The college student is claimed as a dependent on the parent's return and only had earned income.  She is below the filing requirement, but we prepared a return for her in order to request a refund of the taxes withheld. 

However, the state return shows she owes a small amount.   The parents want to only file the federal return for the dependent, and not file the state return (California).  Their thought is that she is technically not required to file a return, therefore, a CA state return doesn't need to be filed even though we are filing a federal return.    Is this correct? 

 

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    3 replies

    IRonMaN
    Level 15
    August 3, 2021

    Here is California's filing requirement.  If they are over it, a return is required.  If not, then no return is required.

    Dependent filing requirement

    If you can be claimed as a dependent, you have a different standard deduction. It cannot be more than the normal standard deduction. Your standard deduction is the larger of:

    • Your earned income plus $350, or
    • $1,100 for the taxable year
    Slava Ukraini!
    abctax55
    Level 15
    August 3, 2021

    "....Their thought is that she is technically not required to file a return "

    How'd they come up with that position?  Owing seems to indicate otherwise.

    HumanKind... Be Both
    BobKamman
    Level 15
    August 3, 2021

    Unless the daughter is a 17-year-old prodigy, she appears to be an adult and capable of making her own decisions.  Have you asked her what she wants to do?  For all we know, California might deny her a $50,000 scholarship in the future because of her failure to comply with California laws.