Image may be NSFW.
Clik here to view.
I get a lot of questions and comments from parents all asking (or assuming) they should add their teenagers income to their tax return.
DO NOT ADD YOUR TEENAGER’S INCOME TO YOUR TAX RETURN!
Here’s the ONLY time you add your child’s income to your tax return:
If they have investment income (interest, dividends, capital gains) from investments in their name.
Then, you may fill out Form 8615 Tax for Certain Children Who Have Investment Income of More Than $1,900. This is infamously called the Kiddie Tax.
See it here:http://www.irs.gov/pub/irs-pdf/f8615.pdf
But the IRS warns taxpayers that they may pay more when filing Form 8615 to report their child’s investment income on their return.
For my tax client’s I always file a separate tax return for the child
I explain how to report a child’s investment income and the Kiddie Tax on my ebook Teens And Taxes.
If your teenager earned money from a job or a micro business, they file their own tax return.
Do NOT add your teenager’s income onto your tax return. You’ll be over paying taxes.
I hope that helps! (and sorry for “yelling”!)
Carol Topp, CPA
