Can I Add My Child’s W2 to My Tax Return?

Many parents wonder if they can include their child’s W2 income on their own tax return. The general rule is that a child’s earned income, such as wages reported on a W2, is typically reported on their individual tax return. This article clarifies how a child’s W2 income is handled for tax purposes.

Reporting Your Child’s Earned Income

A child’s W2 income represents wages or salary received from employment, which is categorized as earned income. This income legally belongs to the individual who performed the work, regardless of age. Therefore, the Internal Revenue Service (IRS) generally requires the child to report this income on their own tax return. Parents typically do not add a child’s W2 to their personal tax return.

Even if a child is claimed as a dependent by their parents, their earned income is considered their own for tax purposes. This means that the child, if they meet certain filing thresholds, must file a separate tax return.

A W2 form details the wages paid and taxes withheld by an employer. The child will use the information from this W2 to complete their own income tax return, if required. Filing a separate return also allows the child to potentially claim a refund for any income tax withheld from their paychecks.

While parents may assist their child in preparing the tax return, the return itself is filed under the child’s name and Social Security number. The child is the primary taxpayer for their earned income.

Determining Your Child’s Tax Filing Obligation

A child’s obligation to file a tax return depends on the amount and type of income they receive. For the 2024 tax year, a dependent child with only earned income must file a tax return if their gross income exceeds their standard deduction amount. The standard deduction for a dependent is the greater of $1,300 or their earned income plus $450, up to a maximum of $14,600.

For instance, if a dependent child earned $5,000 in wages in 2024, their standard deduction would be $5,450 ($5,000 + $450). Since their earned income of $5,000 does not exceed this calculated standard deduction, they would not be required to file a federal income tax return based solely on earned income.

The filing requirements change if a child has unearned income, such as interest or dividends. For 2024, a dependent child with unearned income exceeding $1,300 must file a tax return. If a dependent child has both earned and unearned income, they must file if their gross income exceeds the larger of $1,300, or their earned income plus $450.

Even if a child’s income falls below the filing threshold, filing a tax return can still be beneficial. If federal income tax was withheld from their pay, filing a return is the only way for the child to receive a refund of that overpayment.

How Your Child’s Income Affects Your Tax Return

While a child’s earned income is generally reported on their own tax return, their income and dependency status can indirectly influence a parent’s tax situation. Parents can still claim a child as a dependent if the child meets specific criteria, including age, relationship, residency, and support tests. One important support test is that the child must not provide more than half of their own financial support for the tax year.

Claiming a child as a dependent can enable parents to qualify for various tax benefits, such as the Child Tax Credit. For the 2024 tax year, this credit is worth up to $2,000 per qualifying child. The availability of these credits depends on the parent’s income and other eligibility factors, not the child’s earned income directly.

A specific tax rule, known as the “Kiddie Tax,” applies to a child’s unearned income above certain thresholds, not their earned income from a W2. For 2024, if a child has unearned income exceeding $2,600, the Kiddie Tax may apply. The first $1,300 of unearned income is generally tax-free, and the next $1,300 is taxed at the child’s rate. Any unearned income above $2,600 is then taxed at the parent’s marginal tax rate.

This tax specifically targets unearned income like interest, dividends, and capital gains. Wages reported on a W2 are earned income and are not subject to the Kiddie Tax rules.