Can a Minor File an Income Tax Return?

While many minors may not earn enough to necessitate filing an income tax return, certain circumstances trigger this requirement. The type and amount of income, whether from a job or investments, along with their dependency status, all play a role in determining if a minor must file. Understanding these conditions helps ensure compliance with tax regulations.

Determining if a Minor Needs to File

A minor’s obligation to file an income tax return depends on their gross income, which includes both earned and unearned income. Earned income comes from wages, salaries, tips, or self-employment, while unearned income includes investments like interest, dividends, and capital gains. Being claimed as a dependent also influences the filing thresholds.

For the 2024 tax year, a dependent minor must file if their unearned income exceeds $1,300. This threshold applies to income from sources like savings accounts, stocks, or mutual funds.

If a minor has only earned income, they must file if their earned income is more than the standard deduction amount for a dependent. For 2024, this is the greater of $1,300 or their earned income plus $450, up to a maximum of $14,600. For example, a minor earning $15,000 from a summer job would need to file.

When a minor has both earned and unearned income, they must file if their gross income is more than the larger of $1,300 or their earned income (up to $14,150) plus $450. The standard deduction for a dependent is applied against this combined income.

Self-employment income has a different threshold; a minor must file if their net earnings from self-employment are $400 or more. For instance, a minor earning $500 from freelance graphic design would need to file.

Even if not required to file, a minor may still want to do so to claim a refund of any income tax withheld from their wages. If a minor had federal income tax withheld from a W-2, filing a return is the only way to get that money back. This is a common scenario for minors with summer jobs.

Unearned income exceeding certain limits can be subject to the “Kiddie Tax.” For 2024, if a child’s unearned income exceeds $2,600, the amount above this threshold may be taxed at the parent’s marginal tax rate. The first $1,300 of unearned income is tax-free, and the next $1,300 is taxed at the child’s rate. This rule applies to dependent children under 18 at the end of the tax year, or full-time students under 24.

Gathering Information and Preparing Tax Forms

Preparing a minor’s tax return involves gathering specific information and understanding which forms to use. The minor’s Social Security Number (SSN) is a fundamental requirement for any tax filing.

Income statements are necessary, such as Form W-2 for wages earned from an employer. If the minor received interest, dividends, or other investment income, they will need Form 1099-INT, Form 1099-DIV, or potentially a Schedule K-1 for partnership income. These forms report the gross income received by the minor throughout the tax year.

A minor typically files their income tax return using Form 1040, the U.S. Individual Income Tax Return. On Form 1040, earned income from a W-2 is reported on Line 1a. Interest income from Form 1099-INT is reported on Line 2b, and dividend income from Form 1099-DIV is reported on Line 3b. Form 1040 can be obtained from the IRS website or through tax preparation software.

If the minor’s unearned income is subject to the Kiddie Tax, Form 8615, “Tax for Certain Children Who Have Investment Income,” must be completed. This form calculates the tax on the child’s unearned income at the parent’s tax rate. To fill out Form 8615, information regarding the child’s investment income and, in some cases, the parent’s taxable income is required. Form 8615 is available on the IRS website.

Alternatively, parents may elect to report their child’s interest and dividends on their own tax return using Form 8814, “Parents’ Election to Report Child’s Interest and Dividends.” This election is generally available if the child’s gross income is less than $13,000 for 2024 and consists only of interest and dividends. Form 8814 can be downloaded from the IRS website.

Submitting a Minor’s Tax Return

Once all necessary information has been gathered and the tax forms, including Form 1040 and any applicable Form 8615 or Form 8814, are completed, the next step is submission. There are two primary methods for filing a minor’s tax return: e-filing or mailing a paper return.

E-filing is often the preferred method due to its speed and accuracy. Parents can e-file a minor’s return using various tax software programs or through the IRS Free File options if they meet the income requirements. This digital submission method typically results in faster processing of any refund.

For those who prefer to mail a paper return, the completed Form 1040, along with any attached schedules like Form 8615 or Form 8814, must be sent to the correct IRS mailing address. The specific mailing address varies depending on the state of residence. It is important to check the IRS website or the instructions for Form 1040 to ensure the return is sent to the correct processing center.

After submission, taxpayers can typically expect a processing time of several weeks for paper returns and a shorter period for e-filed returns. If a refund is due, it generally arrives within 21 days for e-filed returns. The IRS offers an online tool, “Where’s My Refund?”, which allows taxpayers to check the status of their refund by entering their Social Security Number, filing status, and refund amount. The IRS may also send correspondence if they have questions or require additional information regarding the submitted return.