Resources:
Why YOU Should Care:
If your dependent children earn income – either through a part-time job or interest and dividends – you may be responsible for filing a return on their behalf.
Filing Requirements
The income amounts that trigger a filing requirement for dependent children are less than those that would require another non-dependent individual to file. It also depends whether the income is “earned” or “unearned.”
Earned Income – Taxable income and wages (such as a part-time job).
Unearned Income – Income that comes from investments, bank account interest, and other non-employment sources.
Dependents with Earned Income Only
A dependent child who is unmarried must file a return if earned income exceeds $5,950. If a dependent child is married AND the child’s spouse files a separate return with itemized deductions, the income amount drops to $5!
Dependents with Unearned Income Only
Unmarried dependent children must file returns if their unearned income exceeds $950. As with earned income, dependent children with spouses who file separately and itemize deductions must file a return if their income exceeds $5.
Dependents with Both Earned and Unearned Income
The IRS has provided the following worksheet in Publication 929:
A child’s tax return is the responsibility of the parent when the child is unable (due usually to age) to file on his or her own. Parents may also sign the return on behalf of their children as long as they include the language “By (parent signature), parent for minor child.”
