What is tax return and how it works?

If my 16 yr old works, but is still my dependant, will she file her own tax return? If not what happens to the tax they take out of her payroll?

• Answer:

  If you're supplying more than half of her support, you can claim her as a dependent -- even if she has to file a tax return herself. She must make more than the minimum to file a tax return (I think its $600), and can't claim herself as an exemption if you are claiming her. Financially, the best thing is probably for you to claim her, because that deduction will be worth more to you than it is to her.