If your child's income is above this year's level, they need to file below that point, they aren't required to file a tax return. The IRS also has a cutoff level for "unearned income," such as dividends or interest. Even so, if an employer withheld taxes from her paycheck, she'll have to file a tax return to obtain a refund.
For tax year 2022 this is the greater of $1,150 or the amount of earned income plus $400 up to the full standard deduction of $12,950.Īs an example, a 15-year-old who works after school and earns less than $12,950 would owe nothing in taxes. Earned incomeĪ minor who may be claimed as a dependent has to file a return once their income exceeds their standard deduction. Whether this is required depends on both the amount and source of the minor’s income. In some cases, you may be able to include their income on your tax return in others, they'll have to file their own tax return. Youngsters are especially ambitious these days, and even if your kids are young enough to be your dependents, they may have to pay taxes.
A minor who earns less than $12,950 will not owe taxes but may choose to file a return to receive a refund of withheld earnings.A minor who may be claimed as a dependent must file a return if their income exceeds their standard deduction ($12,950 for tax year 2022).
0 kommentar(er)
