Can I Put My Child’s W2 on My Tax Return?

When a child earns income, questions arise about its impact on family taxes. A common query is whether a child’s W2 can be included on a parent’s tax return. Generally, a child’s W2 income is reported on their own individual tax return, not the parent’s. Claiming the child as a dependent is a separate, though related, tax consideration.

Reporting Your Child’s Income

A W2, or Wage and Tax Statement, is a document an employer provides that reports an individual’s annual wages and the amount of taxes withheld. Since the income on a W2 is earned by the child, it is the child’s responsibility to report it on their own tax return. Parents do not typically include a child’s W2 on their personal tax return because the income legally belongs to the child as the earner.

This principle holds true regardless of the child’s age or whether they are claimed as a dependent. The child’s gross income, which includes all earned income like wages, tips, and salaries, determines their own tax filing obligations. While parents cannot report a child’s earned income on their return, they may elect to include a child’s unearned income on their own return using IRS Form 8814.

Claiming Your Child as a Dependent

Claiming a child as a dependent can provide tax benefits for parents, such as eligibility for credits and deductions. To claim a child as a qualifying child dependent, several tests must be met:

Relationship Test: The child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of these.
Age Test: The child must be under age 19 at year-end, or under 24 if a full-time student. No age limit applies for permanently and totally disabled children.
Residency Test: The child must have lived with you for over half the year, with exceptions for temporary absences like school or medical care.
Support Test: The child must not have provided more than half of their own financial support. The parent must be primarily responsible for the child’s living expenses.
Joint Return Test: The child cannot file a joint tax return for the year, unless it is solely to claim a refund of withheld taxes.

When Your Child Needs to File a Tax Return

A child’s income, from wages or investments, can trigger a tax filing requirement. For the 2024 tax year, a dependent child with only earned income must file if their income exceeds $14,600. This threshold increases to $15,000 for 2025.

If a dependent child has only unearned income, such as interest or dividends, they must file if this income exceeds $1,300 for 2024, or $1,350 for 2025. When a child has both earned and unearned income, a filing requirement arises if their gross income exceeds the larger of $1,300, or their earned income plus $450. Even if not required to file, filing a return can be beneficial if federal income tax was withheld, as they may be entitled to a refund.

Special Rules for Children’s Unearned Income

Unearned income for a child includes sources not derived from work, such as interest, dividends, and capital gains. To prevent parents from shifting investment income to children to exploit lower tax rates, specific rules known as the “Kiddie Tax” apply. This tax applies to dependent children under age 19, or full-time students under age 24, who have unearned income above certain thresholds.

For the 2024 tax year, the first $1,300 of a child’s unearned income is tax-free. The next $1,300 is taxed at the child’s own tax rate. Any unearned income exceeding $2,600 is then taxed at the parent’s marginal tax rate. For the 2025 tax year, these thresholds adjust slightly, with the first $1,350 being tax-free, the next $1,350 taxed at the child’s rate, and amounts above $2,700 taxed at the parent’s rate.

The Kiddie Tax is calculated using IRS Form 8615, “Tax for Certain Children Who Have Unearned Income,” which is attached to the child’s tax return. Parents may, however, elect to report a child’s interest and dividends on their own return using Form 8814 if the child’s only income is from these sources and it is below a certain amount, typically $13,000 for 2024. This election can simplify filing but might increase the parents’ overall tax liability.