Household members income inclusion

I have a client who is a sole proprietor who employs his daughter (age 25) who lives with him. Client employs three other employees in addition to his daughter. Daughter makes a fair wage for her work. Daughter does not contribute to household expenses. Do I need to include her in the Section 1 list of other persons in the household or dependent section? Also, when I enter her income, I don't see it make any difference in the offer. I assume that's because I don't have her down as contributing to household expenses. Any thoughts?

Answers

  • KellyKelly Posts: 10

    I generally only include other members of the household if the taxpayer will be claiming them as a dependent.

    "Enter the number of people in the household who can be claimed on this year’s tax return including you and your spouse. Under 65_____ 65 and Over_____"

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