If your child or children recently started working (or otherwise earning income), they may need to file a tax return this year — and they might need your help to do so. If your child is required to file, their income may impact your tax liability.
However, this isn't always the case. Parents can often file as they normally would before their child started working. So, can you? Here's what you need to know about your taxes and your child’s taxes for this 2024 tax season.
How much does a child have to make to file taxes?
Whether your child needs to file a tax return depends on how much they made and what type of income they received. If they only had earned income (e.g., from wages), they have to file only if their income exceeds the standard deduction for the tax year ($13,850 for 2023 and $14,600 for 2024).
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The filing threshold is much lower for other types of income.
- Minors must file a 2023 federal income tax return if they received $400 or more in tips or self-employment income.
- For unearned income (for example, income from dividends or interest), the filing threshold is $1,250 for the 2023 tax year.
- Unearned income that exceeds $2,500 is taxed at the parent’s tax rate unless the child’s rate is higher (often referred to as the “kiddie tax).
You can use Form 8615 to calculate your child’s tax liability on unearned income of more than $2,500.
Note: Even if a child isn’t required to file a tax return, they may want to if doing so would result in a tax refund.
Do I have to claim my child’s income on my taxes?
You don’t need to claim your child’s income on your tax return, but the IRS deems parents or guardians responsible when minors can’t file on their own. According to the agency, when a minor cannot sign a return, you must “sign the child's name followed by the word by, then your signature, and your relationship, such as parent or guardian for [the] minor child."
Can I include my child's income on my tax return? If a child earned less than $12,500 in unearned income only, parents may have the option to report the income on their tax return. Additional requirements apply. See IRS Publication 501 for more information.
Can you claim your child as a dependent if they file?
Minors can typically file a tax return without affecting your ability to claim them as a dependent, but there are a few exceptions. For example, your child cannot provide more than half of their financial support to qualify as a dependent. In most cases, the minor child must have lived with you for more than half of the year. However, there are some exceptions to this rule.
- Children who were born or died during the year are considered by the IRS to have lived with you for more than half the year.
- Children who are away at college might still qualify as your dependent.
- Children who were kidnapped qualify as dependents.
- There may be an exception for a child of divorced or separated parents.
- Children who were adopted may still qualify as dependents.
- Temporary absences due to illness, placement in a juvenile detention facility, or vacation do not disqualify the child from being claimed as a dependent.
The IRS has specific rules (and exceptions) for who is considered a qualifying child and who is considered a qualifying relative. See Chapter 3 of IRS Publication 17 for detailed information.
Related Content
- 2023 Child Tax Credit: Who Qualifies and What It’s Worth
- Nine Tax Deadlines for April 15
- Tax Season is Here: Big IRS Tax Changes to Know Before You File
- Who is Required to File a Tax Return?
- Tax Benefits of Hiring Your Kids and IRS Rules to Follow
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FAQs
A minor who may be claimed as a dependent has to file a return once their income exceeds their standard deduction. For tax year 2023 this is the greater of $1,250 or the amount of earned income plus $400 up to the full standard deduction of $13,850.
Does my child have to file a tax return if I claim them? ›
Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. A dependent may have to file a return even if his or her income is less than the amount that would normally require a return.
How much does my child have to make to file taxes? ›
Tax requirements for dependent children are different from those of other taxpayers. A dependent child who has earned more than $13,850 of earned income (tax year 2023) typically needs to file a personal income tax form. Earned income includes wages, tips, salaries, and payment from self-employment.
Do I have to file taxes if my parents claim me as a dependent? ›
In general, a dependent should file if their earned income exceeds the standard deduction for singles or if their investment income exceeds $1,250 for 2023 or $1,300 for 2024. You should file a return if you had taxes withheld from your pay in any amount; determine if you should file here.
Does my dependent college student have to file taxes? ›
Answer: An unmarried dependent student must file a tax return if his or her earned or unearned income exceeds certain limits. To find these limits, refer to "Dependents" under "Who Must File" in Publication 501, Dependents, Standard Deduction and Filing Information.
Can I claim my daughter as a dependent if she made over $4000? ›
Gross income is the total of your unearned and earned income. If your gross income was $4,700 or more, you usually can't be claimed as a dependent unless you are a qualifying child. For details, see Dependents.
What if my dependent child has a W2? ›
If your dependent receives a Form W-2, you cannot report it on your tax return. Your dependent has to report the Form W-2 on their own tax return (if they are required to file).
Can I still claim my child as a dependent if they work? ›
While there are many nuances to tax dependents, you can still claim them even if they earn income or receive SNAP benefits or other government assistance.
Do minors get a full tax refund? ›
Teaching Your Child About Taxes
Tell your child that, depending on their total income for the year, they can probably receive a refund of income taxes withheld but that FICA deductions will not be refunded and will be withheld from earned wages for all of their working years.
How much can dependents make without filing taxes? ›
The minimum income requiring a dependent to file a federal tax return. 2023 filing requirements for dependents under 65: Earned income of at least $13,850, or unearned income (like from investments or trusts) of at least $1,250.
If you can be claimed as a dependent on your parents' return, you can still file your own return so that you can receive a refund of taxes withheld. (You will not get back anything for Social Security or Medicare withheld.)
Can I still file my taxes if someone claimed me as a dependent? ›
You can be claimed as a dependent and still need to file your own tax return. Your filing requirement depends on your income, marital status and other criteria. Find details on filing requirements for dependents.
When should I stop claiming my child as a dependent? ›
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
Do I have to report my child's income on my tax return? ›
Can I include my child's income on my tax return? If a child earned less than $12,500 in unearned income only, parents may have the option to report the income on their tax return. Additional requirements apply. See IRS Publication 501 for more information.
How do I file taxes for my dependent child who works? ›
To claim a child's income on a parent's tax return, the child needs to be considered a qualifying child dependent of the parent. Parents can use IRS Form 8814 to elect to report their child's income on their tax return instead of the child filing their own return.
When should a student not be claimed as a dependent? ›
Make sure your dependent meets the IRS requirements. Generally, the IRS requires that the child is under the age of 19 (or under 24 if a full-time student), lives with you for more than half the year, and does not provide more than half of their own financial support.
Do parents claim child's income on taxes? ›
To claim a child's income on a parent's tax return, the child needs to be considered a qualifying child dependent of the parent. Parents can use IRS Form 8814 to elect to report their child's income on their tax return instead of the child filing their own return.
What is the advantage of claiming a dependent? ›
In addition to the numerous tax credits and deductions, you may qualify for head of household status if you have a dependent. Taxpayers who file as heads of household have a higher standard deduction and a lower marginal tax rate than single filers, both of which can lower your taxes.
