| The biggest question in the category of children filing | | | | issues pertaining to children can become quite involved |
| taxes is whether they need to or not. Believe it or not, | | | | and that they may have repercussions beyond issues |
| they just might. If a child earns over $5350 as reported | | | | of taxes. If you have a child who earns more than you |
| on a W-2 and is claimed on someone else's tax return | | | | and your spouse combined, you should have an |
| as a dependent, that child must file an income tax | | | | attorney you can consult in this regard. |
| return. If the child claims him or herself as a dependent, | | | | Parents often wonder if having a working child will |
| the child must file for earnings above $8750. If a child is | | | | impact their own taxes. The answer to this is, except |
| determined to be an independent contractor, he or she | | | | for the issue of dependency we just addressed, rarely. |
| must file for earnings of more than $400 because of | | | | If your child earns enough money to file an income tax |
| the self-employment tax. Children earning less than | | | | return, then he or she is a taxpayer in his or her own |
| these amounts are not required to file, but they should | | | | right. The wage earnings of a minor child impact the |
| consider doing so because any withholding will be | | | | taxes of his or her parents no more or less than the |
| refunded. | | | | earnings of an adult child. |
| If your child has an earned income and it is decided | | | | In this regard, you need to look out for your minor child |
| that he or she should file an income tax return, they do | | | | by keeping all necessary records, documentation, and |
| so separately from you. You can decide whether to | | | | receipts applicable to their tax situation. Just like your |
| claim your child as a dependent or not. This is a pretty | | | | own taxes, you want to make certain that your child |
| simple financial decision. If the child earns more than the | | | | does not overpay the Internal Revenue Service simply |
| combined income of his or her parents, it benefits the | | | | because he or she is a child. Be certain that your child's |
| family to allow the child to file as their own dependent. | | | | tax liability is as low as legitimately possible, just like |
| If the child earns less than the combined income of | | | | your own. Remember that your child is now a |
| both parents, it benefits the family to claim the child as | | | | taxpayer and is entitled to all legitimate credits, |
| a dependent. | | | | exemptions, and deductions under the tax code. |
| You should, however, be informed that dependency | | | | |