Are you scrambling to finish filing in time for the tax deadline ^[1]? Did you remember to file taxes for your kids?

Since we opened multiple accounts at ING to get $25 Sign Up Bonuses ^[2] for our kids, they’re earning interest on their accounts, which reminded me to check into the kids tax filing rules. (Signing up for College Advantage $25 Sign Up Bonuses ^[3] do not count as income for your child.)

If your kids earn interest and dividends, or have a job, check out the requirements for filing taxes.

2012 Kids Tax Filing Requirements

If you claim your child as a dependent ^[4] on your return, the kids need to file taxes if ANY of the following are true:

• Earned income, from a job for example, is more than $5,950.
• Unearned income, including dividends or interest, is more than $950.
• Self employment net earnings are more than $400.
• Earned and unearned total income is more than the larger of $950 or earned income plus $300.

Also, if interest, dividends and other investment income are more than $1,900, you’re going to get hit with the kiddie tax ^[5] (which means you’ll pay your tax rate ^[6] on part of your child’s income).

Filing a Child’s Tax Return

You can file your child’s taxes for free at TurboTax ^[7].

If you want, you can also attach it to your return if the income is less than $9,500 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 ^[8] 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.

More Filing Requirements

There are other circumstances when children must file a tax return. For more information see When Do Kids Need to File Taxes? ^[9] or Publication 929, Tax Rules for Children and Dependents ^[10].

For more information when others must file, see minimum income to file taxes ^[11].

Also see 10 Ways to Lower Your Taxes with Kids ^[12] for ways to save money.