Hello,
Your dependent can start earning money at any age.
A minor who may be claimed as a dependent must file a return if their income exceeds their standard deduction ($12,950 for tax year 2022).
• A minor who earns less than $12,950 will not owe taxes but may choose to file a return to receive a refund of withheld earnings.
• A child who earns $1,150 or more (tax year 2022) in "unearned income,” such as dividends or interest, needs to file a tax return.
• A minor who earns tips or makes more than $400 (tax year 2022) in self-employment income will have to pay Social Security or Medicare taxes, regardless of their total earnings.
Hello,
Your dependent can start earning money at any age.
A minor who may be claimed as a dependent must file a return if their income exceeds their standard deduction ($12,950 for tax year 2022).
• A minor who earns less than $12,950 will not owe taxes but may choose to file a return to receive a refund of withheld earnings.
• A child who earns $1,150 or more (tax year 2022) in "unearned income,” such as dividends or interest, needs to file a tax return.
• A minor who earns tips or makes more than $400 (tax year 2022) in self-employment income will have to pay Social Security or Medicare taxes, regardless of their total earnings.
MY DEPENDENT HAD A JOB
If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return. He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return. (Supervise this closely or prepare it for him!)
If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.
You might also want to use free software from the IRS Free File versions: