Let's say a dependent child makes money doing chores for their parents at home. The parent will pay their child cash or just deposit it into the kid's bank account. How much do they have to make a year in order to be forced to report it?
My understanding is $12,400 a year as a dependent minor, under 18 years.
I got this link
ttlc.intuit.com/community/retirement/discussion/re-funding-a-custodial-roth-ira-for-children/01/2017...
When a dependent (child or adult) may need to file a tax return
Taxpayers who are claimed as a dependent on someone's tax return are subject to different IRS filing requirements, regardless of whether they are children or adults. A tax return is necessary when their earned income is more than their standard deduction.
The standard deduction for single dependents who are under age 65 and not blind is the greater of:
- $1,100 in 2020
- Or the sum of $350 + the person's earned income, up to the standard deduction for an unclaimed single taxpayer which is $12,400 in 2020.
A dependent's income can be "unearned" when it comes from sources such as dividends and interest. When a dependent's unearned income is greater than $1,100 in 2020, the dependent must file a tax return.
