This tax season, one of the most often asked questions was: “Does my child need to file an income tax return?” My standard answer to that question is, “It depends on your child’s situation.”

Your child is your dependent and is unmarried.

In this case your child must file a tax return if any of the following is true:

  • Your child’s unearned income was more than $1,050. Examples of unearned income:
    • Interest income.
    • Dividend income.
    • Capital gains.
  • Your child’s earned income was more the $6,300. Examples of earned income:
    • Wages from working for an employer.
    • Self-employment income from, for example, a lawn mowing business or babysitting.
  • Your child’s gross income was more than the larger of:
    • $1,050, or
    • His/her earned income plus $350 (maximum $6,300).

Your child is your dependent and is married.

In this case your child must file a tax return if any of the following is true:

  • Your child’s gross income as at least $5 and his/her spouse files a separate return and itemizes deductions.
  • Your child’s unearned income was more than $1,050. Examples of unearned income:
    • Interest income.
    • Dividend income.
    • Capital gains.
  • Your child’s earned income was more than $6,300. Examples of earned income:
    • Wages from working for an employer.
    • Self-employment income, for example, a lawn mowing business or babysitting.
  • Your child’s gross income was more than the larger of:
    • $1,050, or
    • His/her earned income plus $350 (maximum $6,300).

Additional situations where your dependent child may have to file an income tax return

  • Your child had income taxes withheld from his/her wages and total income is less than the limits listed above.

In this situation, your child will want to file their income tax return to get a refund of the taxes that were withheld.

  • Your child has self-employment income from their own business such as providing lawn mowing services or babysitting.

In this situation, your child will be subject to self-employment tax if his/her business net income for the year is at least $400. Consequently, your child will need to file a tax return to pay the self-employment tax even if his/her total income is less than limits listed above.

Judith Ackland has more than 26 years of experience in accountancy and financial planning, including seventeen years as a CFO of a diverse business. She started Crystal Financial in 2010 to help a wide array of individuals, families, and business owners better understand their finances and how good financial management could help them achieve their goals. Judith has an MA in Professional Accountancy from the University of Nebraska at Lincoln as well as a Certified Public Accountant Certificate and a Certified Financial Planner designation.

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