Zielonka Financial Services LLC

(888) 967-1040

Tax Read Time: 3 min

Does Your Child Need to File an Income Tax Return?

As parents, we encourage our children to work, so they can learn important values about work and independence. At what point, if at all, do children need to file an income tax return for the money they earn?

The IRS does not exempt anyone from the requirement to file a tax return based on age, even if your child is declared as a dependent on your tax return.1

Your dependent children must file a tax return when they earn above a certain amount of income.

Dependent children with earned income in excess of $12,550 must file an income tax return. Dependent children with unearned income of more than $1,100 must also file a return. And if the dependent child's earned and unearned income together total more than the larger of $1,100, or a total earned income up to $12,200 plus $350.2

These thresholds are subject to change, so please consult a professional with tax expertise regarding your individual situation.

Here's an example. Kyle is a 20-year-old college student who's claimed as a dependent by his parents. He received $400 in unearned income and $5,500 for a part-time job on campus. He does not have to file a tax return because both his unearned and earned income fall below the thresholds. Kyle's total income of $5,900 is less than his total earned income plus $350.

Even if your child earns less than the threshold amount, filing a tax return may be worthwhile if your child is eligible for a tax refund.

If you decide to prepare a separate return for your child, the same reduced standard deduction rules detailed above will apply.

1. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties.
2. IRS.gov, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Financial Fixes: From Health Scare to Financial Care

Financial Fixes: From Health Scare to Financial Care

A medical scare can be a wake-up call in terms of your physical and financial health. Here’s how to strengthen your finances

The Real Cost of a Vacation Home

The Real Cost of a Vacation Home

What if instead of buying that vacation home, you invested the money?

U.S. Personal Savings Rate

U.S. Personal Savings Rate

What can be learned from the savings rate?

 

Have A Question About This Topic?







Thank you! Oops!

How Big is Money?

Learn a little about worldwide currency in this fun infographic

Earnings for All Seasons

Earnings season can move markets. What is it and why is it important?

Do You Know the Whole Life Story?

Change comes at us from every angle as people update and upgrade everything from their diets to their devices, seemingly every day.

View all articles

Lifetime of Earnings

Estimate how much you have the potential to earn during your working years.

Can I Refinance My Mortgage?

This calculator can help determine whether it makes sense to refinance your mortgage.

Inflation & Retirement

Estimate how much income may be needed at retirement to maintain your standard of living.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

View all presentations

Where Is the Market Headed?

We all know the stock market can be unpredictable. We all want to know, “What’s next for the financial markets?”

To Buy or Not to Buy

The decision whether to buy or rent a home may have long-term implications.

The Power of Compound Interest

Learn how to harness the power of compound interest for your investments.

View all videos