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 $2,100 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 $2,100 and less than $10,500. 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 reporting a 401K rollover with tips from the tax experts at H&R Block.
Understanding how to offset capital gains is a topic that many tax filers avoid. Brush up on key terms and the process with advice from H&R Block tax pros.
Learn how much you can sell before paying tax with advice from the tax experts at H&R Block.
What is your child’s tax rate? Learn the tax rules for children and dependents and get tax answers at H&R Block.