Dependent Filing Requirement re: Earned Income W2

[10409000]

Hello everyone. So I often have clients that claim dependents who also work and receive a W2. I usually tell them that if they made less than 12,950 they are not required to file a tax return. However, I just realized that is not the same case for the state of California. I read that for California the dependent must file if the child AGI is more than 1,150 or "Earned Income plus 500, up to 5,202" im sorry but that confused the heck out of me when i read the "earned income plus 500, up to 5,202" can someone dumb this down for me or explain it to me. So let me throw out some examples..  Kid #1 W2 income only $7,000  they are required to file a return since they made over 5,202 right? I feel terrible cause I have been telling them they are not required to file if they made less than 12,950 😞 so far none of the kids have received a letter from the state that they need to file a tax return. 

[Just-Lisa-Now- · Accepted solution]

yes, you have to watch it with CA, much lower income limit requires filing.   

I "think" CA really only gets info from the IRS when a return is filed, I dont think they get W2s from SSA, so that may be a black hole these kids fall into.

[abctax55]

Yep... for CA  the standard deduction is 5202.

$ 7000- 5202 = 1798 taxable income.  For $ 18 in tax.

And CA will probably try to collect at some stage.   They don't quite get the cost/reward scenario.

(edit... or what Lisa said.... a client interrupted me 🙂

[10409000]

I see. Thank you so much for responding i appreciate you!