Question

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?

Answer

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:

  • Interest
  • 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.

Related Topics

Related Resources

Incentive Stock Options (ISO)

Learn more about Form 3921 and incentive stock option rules with the tax experts at H&R Block.

What’s A Stay-At-Home Mom’s Salary? [INFOGRAPHIC]

If a stay-at-home mom earned a salary, what would it be? Learn more about how much mom is worth at H&R Block.

Employee Stock Purchase Plan Taxes

Learn more on how taxes impact your employee stock purchase plan from the tax experts at H&R Block.

What is modified adjusted gross income (MAGI)?

Trying to determine your modified adjusted gross income (MAGI)? Find out what goes into calculating modified adjusted gross income and how it’s used.