Filing Requirements for Children

When should you file a tax return for your child? If your child receives a W-2 and the amount is greater than $6,350 then a return is required. Also if withholding was done on your child's W-2 then you should file a return to obtain a refund even if the W-2 amount is less than $6,350. You don't want to let the government keep it. If your child receives a 1099 with box 7 filled out which is nonemployee compensation, then a return is required if the amount is $400 or more because self employment tax of 15.3% is due on net self employment income. The IRS considers interest, dividends, and capital gains unearned income and your child is required to file a return if the amount of such income is greater than $1,050.