How to File a Tax Return for Your Child

Knowing whether or not you have to file a tax return for your kids can be a hassle. This article explains how to do so.

Things You'll Need

• All of your kids' income statements for the year

Instructions

1. The first step in determining whether or not your child has to file a tax return is to find out how much income he or she received last year. If your child received investment income of at least $300 and gross income of $850 or more, then he or she must generally file a return.

2. But if your child has no investment income of any kind, then no return must be filed, unless the child has earned income of at least $5,350 for 2007.

3. If your child was under 18 in 2007 and had investment income of $1,700 or less, then you will file a regular 1040 or 1040EZ for the child. All of your child's income will be taxed at his or her own tax rate. You must sign your child's return if he or she is too young to do so.

4. Any investment income your child received in excess of $1,700 must be taxed at your top marginal tax rate. This is known as the "Kiddie Tax" penalty.

Tips & Warnings

• For more information on filing dependent tax returns, visit the IRS website at irs.gov (see link below).

• This article is for general educational purposes only and is not intended to be construed as specific tax or financial advice of any kind. If you have further questions on this topic, you should consult your tax or financial advisor.

Resources

• Internal Revenue Service