Question: My son lives at home and and works part-time. This year, he must file a tax return for $9,000 income. I currently take a deduction on my taxes for him. My question is this, is it okay to list him as a dependent if he files his own tax return?
Answer: Your dependent can opt out of his personal deduction when filing his income tax return. This will allow you to continue to claim him as a dependent, but you must include his $9,000 to your household income. If he wants to keep his personal deduction, he must apply for coverage as a one-person household. His income of $9,000 makes him eligible for Medi-Cal. In that case, you would not include his income in your household.