Do they have earned income as well? How you report your child's investment (unearned) income depends on how much they've made. A person is considered your child if they're a dependent under the age of 19 (24 if a full-time student) as of December 31, 2024.
- If your child's only income is unearned and doesn't exceed $1,300, it doesn't need to be reported on any return.
- If your child's unearned income is between $1,300 and $14,600, they may need to file their own return, but in certain situations, this income can be included on your return. Follow the instructions here to see what your best option is.
- If your child's unearned income is $14,600 or more, they need to file their own return. In this case, you would not include any of their income on your return, but you could still claim them as dependents if they are your qualifying child. **
The Kiddie Tax applies if your child:
- has unearned income (usually from investments) exceeding $2,600
- is required to file a return
- isn’t filing jointly
- is under age 18 (or under age 24 if a full-time student) as of January 1, 2025
** If their gross income (earned plus unearned) exceeds the larger of $1,300 or their earned income (up to $14,200) plus $400 - they are required to file and you would not include any of their income on your return even if you claim them as dependents.
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