At age 67, our 22-year-old retires and, according to Social Security, the 22-year-old can expect to get $80,000 a year in Social Security benefits. Now, keep in mind, that number is not adjusted for inflation, so thatâs about approximately the same as $25,000 a year today.
Even later in life, they may have to fall back on their parents. Usually when a parent provides most of a child's support, even if the child works, the parent can claim the child as a dependent, regardless of the child's age. When the child files his income tax return, he will not be able to claim his own exemption and may have a reduced standard deduction. But he can still claim many other deductions.
This is true even if you chose not to claim your child as a dependent on your own tax return. Can I still claim the Child Tax Credit? Each dependent child under the age of 17 can qualify you for the $1,000 per child tax credit. The credit is available to you even if your child is working and paying taxes on their income. Unfortunately, the year your child turns 17 the tax credit is no longer available. When is my child's tax return due? Even children have to file their tax return and pay their taxes by April 15. Which forms should I use? If your dependent child has a job with a W-2 and no investment income, they can usually file Form 1040 EZ, Income Tax Return for Single and Joint Filers With No Dependents. Again, if your child has multiple sources of income or had their own business, the tax implications could be more tricky.