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Level 1
posted May 31, 2019 9:48:03 PM

"My dependent child has $5,600 miscellaneous income do he have to file"

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1 Best answer
Level 13
May 31, 2019 9:48:05 PM

 

 

Whether or not your child must file depends on the facts and circumstances.

For example, is the $5,600 earned or unearned income (both can show up on the 1099-MISC)?

"Earned income" is from labor - "salaries, wages, tips, professional fees, and taxable scholarship and fellowship grant". "Unearned income" is income that is not earned, such as "taxable interest, ordinary dividends, capital gain distributions, unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust."

Generally, your dependent must file a return if any of the following are true:

 

  • The child’s earned income is more than $6,300 (all numbers here are for 2016)
  • The child’s unearned income is more than $1,050
  • The child income from self-employment (usually found on box 7 of the 1099-MISC) is more than $400
  • The child’s gross income was more than the larger of (a) $1,050 or (b) earned income (up to $5,950) plus $350

 

See the full set of requirements at Table 1-2 at IRS Publication 17. and Table 1-3.

Note that if the child is not required to file under the above rules, but there was federal tax withheld (box 2 on the W-2), then s(he) may want to file anyway, to get the withholding refunded.

 

[Edited 02.02.17 | 2:55 PST]

[Edited 4/2/2020 3:12 pm CDT - typo]

 

4 Replies
Level 13
May 31, 2019 9:48:05 PM

 

 

Whether or not your child must file depends on the facts and circumstances.

For example, is the $5,600 earned or unearned income (both can show up on the 1099-MISC)?

"Earned income" is from labor - "salaries, wages, tips, professional fees, and taxable scholarship and fellowship grant". "Unearned income" is income that is not earned, such as "taxable interest, ordinary dividends, capital gain distributions, unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust."

Generally, your dependent must file a return if any of the following are true:

 

  • The child’s earned income is more than $6,300 (all numbers here are for 2016)
  • The child’s unearned income is more than $1,050
  • The child income from self-employment (usually found on box 7 of the 1099-MISC) is more than $400
  • The child’s gross income was more than the larger of (a) $1,050 or (b) earned income (up to $5,950) plus $350

 

See the full set of requirements at Table 1-2 at IRS Publication 17. and Table 1-3.

Note that if the child is not required to file under the above rules, but there was federal tax withheld (box 2 on the W-2), then s(he) may want to file anyway, to get the withholding refunded.

 

[Edited 02.02.17 | 2:55 PST]

[Edited 4/2/2020 3:12 pm CDT - typo]

 

New Member
May 31, 2019 9:48:08 PM

Even if the $5600 is earned income he has to file.  Even if he doesn't owe income tax, he owes a lot of self employment tax..  But the tax isn't necessarily on $5600.  If the 5600 paid for a job that included supplies provided by youor son, etc then those would be deducted from the taxable amount.

Level 1
May 31, 2019 9:48:09 PM

Contradicting answer from TurboTaxBillMc , Enrolled Agent need to research more on Table 1-2 at IRS Publication 17.

New Member
May 31, 2019 9:48:11 PM

Actually, if you read the part where BillMc, EA  Says: Generally, ..You will see that he is saying the same thing as I.Try looking at Table 1-3 (item 3).  Table 1-2 has to do with income tax, only.    If your son doesn't file he will get a letter from the IRS demanding taxes, interest, and penalties.