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dimmi0205
New Member

My 10-yr sold artwork in 2024 & made $800 I opened a minor Roth & deposited that money (1) Do I need file separate tax for kid? (2) if yes, how to report that $ in tax?

(3) Can I still claim the 10 yr old for child tax credit even if kid need to file separate tax?
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4 Replies

My 10-yr sold artwork in 2024 & made $800 I opened a minor Roth & deposited that money (1) Do I need file separate tax for kid? (2) if yes, how to report that $ in tax?

No you do not need to file a tax return for the child if that was their only income for the year.

 

Yes, you can still claim the child as your dependent.

dimmi0205
New Member

My 10-yr sold artwork in 2024 & made $800 I opened a minor Roth & deposited that money (1) Do I need file separate tax for kid? (2) if yes, how to report that $ in tax?

since its deposited in Minor roth (which is an after tax account) and the earned income was in cash and no tax was paid upfront but all earnings were as is deposited in minor roth - so would there be no tax liability? 

My 10-yr sold artwork in 2024 & made $800 I opened a minor Roth & deposited that money (1) Do I need file separate tax for kid? (2) if yes, how to report that $ in tax?


@dimmi0205 wrote:

since its deposited in Minor roth (which is an after tax account) and the earned income was in cash and no tax was paid upfront but all earnings were as is deposited in minor roth - so would there be no tax liability? 


Correct he has no tax liability.

He would only have to file a tax return if he had unearned income of $1,300 or more

Or earned income of more than $14,600

My 10-yr sold artwork in 2024 & made $800 I opened a minor Roth & deposited that money (1) Do I need file separate tax for kid? (2) if yes, how to report that $ in tax?


@dimmi0205 wrote:

since its deposited in Minor roth (which is an after tax account) and the earned income was in cash and no tax was paid upfront but all earnings were as is deposited in minor roth - so would there be no tax liability? 


Re-thinking this -

The income earned for the sale of the artwork could be construed as self-employment income and since the income was $400 or more he would have to file a tax return and report the income and any expenses on a Schedule C.

You can decide to file a tax return for him for the self-employment income and if you do make sure that you indicate on the return that he can be claimed as a dependent.

Also, If you're filing a return for a minor child who cannot sign the return, sign the child's name followed by the word "by," then your signature, and your relationship, such as "parent" or "guardian for minor child."

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