I need to know how much can a child earn before paying taxes. How much interest income can my dependent child earn before being required to file a return and pay investment income taxes?
Either your child must file his/her own investment income taxes or you must report your child’s income on your own return if your child’s income totals more than $2,200 from these:
- Dividends — including Alaska Permanent Fund dividends
- Capital-gain distributions
- Other investment income
Use Form 8615 to figure the tax on your child’s investment income.
How much can a child earn before paying taxes — your child’s investment income might be more than $2,200 and less than $11,000. If so, you can choose to include the income on your return. You’ll use Form 8814, and your child won’t need to file a return.
If your child has other types of income, you must file a return for the child. You can’t report the income on your return. Other income includes earned income or capital gains / losses from stock sales.
Learn more about combat pay exclusions and get tax answers at H&R Block.
Learn more about section 1202 gains from small business stocks and get tax answers at H&R Block.
Learn more about reporting clergy housing allowance with advice from the tax experts at H&R Block.
Learn more about second home tax deductions and taxes on selling a second home with the tax experts at H&R Block.