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.
Earned income, from a job for example, is more than $6,100.
Unearned income, including dividends or interest, is more than $1000.
Self employment net earnings are more than $400.
Earned and unearned total income is more than the larger of $1000 or earned income plus $350.
Also, if interest, dividends and other investment income are more than $2,000 in 2013 or 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).
Filing a Child’s Tax Return
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.
You can get my latest articles full of valuable tips and other information delivered directly to your email for free simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.
Advertiser Disclosure: MyDollarPlan.com is an independent, advertising-supported service. The offers that appear on this site are from companies which MyDollarPlan.com receives compensation. This compensation may impact how and where products appear on this site, including, for example. the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. MyDollarPlan.com does not include the entire universe of available financial or credit offers.