Does a child/dependent need to file a return?

[az148]

Hello folks, I am trying to understand who needs to file a tax return and while the requirements are pretty clear, I have trouble understanding the following:

• Your gross income was more than the larger of:
  • $1,100
  • Your earned income up to $12,200 plus $350.

So is this saying that you have to file if your gross income is greater than $1100 or $12550? 

[xmasbaby0]

Please explain what kind of income your child had for 2021.   Did your child have investment income?  If so --how much?   Or did your child have a job and earn some income?

[az148]

Part-time job with income ~12k

[xmasbaby0]

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:

https://apps.irs.gov/app/freeFile/

[az148]

earnings over $400? where are you seeing this key information? I don't see it on the IRS website thank you!

[xmasbaby0]

Self-employment income of at least $400  requires you to file a tax return and pay self-employment tax for Social Security and Medicare.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

[az148]

thank you so much for your feedback. but can you explain what this line means as indicated in my original inquiry?

1. Your gross income was more than the larger of—

   1. $2,800 ($4,500 if 65 or older and blind), or

   2. Your earned income (up to $12,200) plus $2,050 ($3,750 if 65 or older and blind).

[xmasbaby0]

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

[xmasbaby0]

We could probably be more helpful to you if you would specify what kind of income your child received.   Did he have a W-2?   A 1099NEC?   Something else?

[az148]

w-2

[TaxLearner · Accepted solution]

All dependent children who earn more than $12,550 of income must file taxes. Your child/dependent should always file a tax return to get a refund.

The $1,000 refers to the first $1,100 of unearned income that is not taxed. That is the child's standard deduction.

[xmasbaby0 · Accepted solution]

Instead of going in circles---that helps.   If your child has tax withheld in box 2 or box 17 of his W-2 then he can file a tax return to seek a refund.   He will not get back anything from boxes 3 or 4.   He is not REQUIRED to file unless he made over $12,550, but since kids like money, if he can get a refund he should file a return even if he earned less than the amount that requires him to file.