Unless otherwise stated by the Internal Revenue Code, ALL INCOME is taxable.
Dependent Children have Tax Filing Requirements that are different from those of other taxpayers.
- For Tax Year 2024, a dependent child who has earned more than $14,600 ($13,850 in 2023) of earned income needs to file a personal income tax form (1040). Earned income includes wages, tips, salaries, and payment from self-employment.
- A dependent child who receives more than $1,300 in investment income in 2024 ($1,250 in 2023) is required to file a tax return. Investment income includes interest and dividend payments.
- If your child’s investment income consists only of interest and dividends, you can use IRS Form 8814 to include it on your own return and combine it with your own income. Doing this may push you into a higher tax bracket and result in higher income tax than if you prepare a separate return for your child.
Lastly, a dependent child may NOT be required to file a tax Return, but if he/she had any withholdings, oftentimes it is advantageous to file a Tax Return as a dependent so that he/she ay get a refund for said withholdings.
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