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Usually filing taxes for the kids is an afterthought. Only after people scramble to finish filing in time for the tax deadline do they realize they didn’t even think about the kids. Let’s put in on the radar earlier this year. Will you remember to file taxes for your kids?
If your kids earn interest and dividends, or have a job, check out the requirements for filing taxes.
If you claim your child as a dependent on your return, the kids need to file taxes if ANY of the following are true for tax year 2014 (due in 2015):
Also, if interest, dividends and other investment income are more than $2,000 in 2014, you’re going to get hit with the kiddie tax (which means you’ll pay your tax rate on part of your child’s income).
You can file your child’s taxes for free at TurboTax.
If you want, you can also attach it to your return if the income is less than $10,000 and only from interest or dividends. This option is available to children under age 19 (or a full time student under 24) using Form 8814.
A word of caution though, qualified dividends or capital gains may be taxed at a higher rate if you attach it to your return instead of filing the child’s return separately.
There are other circumstances when children must file a tax return. For more information see Publication 929, Tax Rules for Children and Dependents.
For more information when others must file, see minimum income to file taxes.