A minor must file, for example, if a minor owes Social Security or Medicare taxes on tip income. See the tax return instructions to find out who qualifies for these credits. For all these reasons it’s vitally important to know how much your dependent child can earn before a tax return has to be filed.
If they are a dependent, the standard deduction for tax year 2023 is the greater of $1,250 or their earned income plus $400. The amount cannot be higher can you file taxes at 18 than the basic standard deduction for their filing status. Even if your kids are young enough to be your dependents, they may still have to pay taxes.
Filing Coupled Income Tax Returns: Tips for Newlyweds
The IRS offers a variety of options for taxpayers who owe the IRS but cannot afford to pay. The IRS also reminds taxpayers who owed a refund that they don’t receive a penalty for filing late. Every year, more than 1 million taxpayers overlook a tax refund; the IRS reminds those who didn’t file in 2019 that time is running out to get any refund owed to them. A minor can and may even be required to file taxes even if their parents can claim them as a dependent.
Earned income is money you get as compensation for working and includes wages, salaries and tips, which likely includes any money you earned as an independent contractor or from your own business. To learn more before you file your tax return, check out our tax-filing guide. For additional financial guidance, The Ascent also offers free personal finance resources.
If Your Child Has Earned Income Only
However, you may own income tax if you’re under 18, even if your parents or someone else claims you as a dependent on their taxes. You’ll have to prepare a return if you earn more than $12,000 at a job during the 2018 tax year. However, if you earn less, you still should file a return if your employer paid federal taxes on your behalf, as you may qualify for a refund. It’s still worth spending a few minutes to file a federal tax return, even if the law doesn’t require it.
