When Does Your Child Have to File a Tax Return?

Sometimes one or more of your kids should document their tax returns.This can be true even though they remain your dependents for taxes purposes. Achild is accountable for filing his or her tax come back and for paying any tax, fines, or interest on that return.

How Much Income Did Your Child Earn?

Whether your child must file tax returns will depend on how much received and unearned income he or she earned during the calendar year. “Earned income” is income a kid earns from working. “Unearned income” is income acquired from investments.

Received Income Only

A child who has only acquired income must record a tax return only if the full total is more than the standard deduction for the entire year ($6,300 in 2016 and 2015).

Unearned Income Only

A child who may have only unearned income must document ago back if the total is more than $1,050 (2016 and 2015).

Example: Sadie, an 18-year-old dependent child, received $1,900 of taxable interest and dividend income through the year. She did not work through the time. She must file a tax return because she has unearned income only and her total income is more than the unearned income threshold for the year.

However, the mother or father of a child under get older 19 (or under time 24 in case a full-time student) may be able to elect to include the child’s interest and dividend income on the parent’s go back. If the parent or guardian makes this election, the kid does not have to document a tax return.

Acquired and Unearned Income

If a child has both attained and unearned income, he and she must document a comeback (2016 and 2015) if:

  • unearned income was over $1,050
  • earned income was over $6,300, or
  • received and unearned income alongside one another total more than the bigger of (1) $1,050, or (2) total acquired income (up to $6,300) plus $350.

Should a TaxReturn Be Filed EVEN WHEN Not Required?

Even if your son or daughter does not meet the filing requirements talked about, she or he should file a tax return if (1) tax was withheld from his or her income, or (2) she or he qualifies for the won income credit, additional child duty credit, health coverage duty credit, refundable credit for preceding year minimum tax, first-time homebuyer credit, adoption credit, or refundable American opportunity education credit. Start to see the tax return instructions to find out who qualifies for these credits.

By submitting a tax return, your child can get a refund.

What Is a Child’s Income Duty Rate?

For federal tax purposes, the income a kid receives for personal services (labour) is the child’s, even if, under condition law, the father or mother is entitled to and obtains that income. Thus, reliant children pay income tax on their acquired income at their tax rates.


However, the guidelines are extremely different regarding unearned income for a child under 19 years (or under get older 24 in case a full-time scholar). Within this event, tax on unearned income above the twelve-monthly threshold must be paid at the parent’s maximum taxes rate, not the child’s specific tax rate (which would usually be lower than that of the parents). For details, see the  “Www.taxreturnco.com.au.”

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