Does My Son Need to File Taxes? Here’s What to Know

Figuring out whether your son needs to file taxes can be confusing, especially if he has a part-time job or earns money from other sources. The IRS has specific rules based on income type, amount, and dependency status that determine whether a tax return is required.

Dependent Filing Rules

The IRS determines whether a dependent must file a tax return based on income type, amount, and filing status. A dependent is typically someone who qualifies as another taxpayer’s child or relative under IRS rules, meaning they rely on that person for financial support. Even if they do not owe taxes, they may still need to file if their income exceeds certain limits or if specific tax situations apply.

Self-employment income is treated differently from wages or investment earnings. If a dependent earns at least $400 from self-employment, they must file a tax return to report and pay self-employment taxes, which cover Social Security and Medicare contributions.

Tax withholding is another reason a dependent may need to file. If an employer withholds federal income tax from a dependent’s paycheck, filing a return may be necessary to claim a refund. This is common for teenagers with part-time jobs who have taxes deducted from their earnings but ultimately owe nothing.

Earned Income Threshold

A dependent’s requirement to file a tax return depends on how much they earn from working. For the 2024 tax year, a dependent with only earned income—such as wages, salaries, or tips—must file if their total earnings exceed $14,600. This threshold is adjusted annually for inflation.

Even if a dependent’s income is below this limit, filing may still be beneficial. If they had federal income tax withheld from their paycheck, submitting a return allows them to claim a refund. Filing also establishes a record of earnings for Social Security benefits and may be necessary to claim tax credits like the Earned Income Tax Credit (EITC).

Unearned Income Threshold

Some dependents receive earnings from investments, savings accounts, or other sources that don’t require active labor. The IRS sets specific thresholds for unearned income, which includes interest, dividends, capital gains, taxable scholarships, and certain trust distributions. For 2024, a dependent must file a tax return if their unearned income exceeds $1,300.

Kiddie tax rules apply to dependents under 19—or under 24 if they’re a full-time student—who have unearned income above $2,600. Any amount over this threshold may be taxed at their parent’s tax rate rather than their own, potentially increasing tax liability. This rule prevents families from shifting large amounts of investment income to children in lower tax brackets to reduce overall tax burdens.

Self-Employment Income

Earning money through self-employment introduces tax obligations that differ from traditional wages. Whether a dependent operates a small business, freelances, or works in the gig economy—such as reselling goods online or providing digital services—their net earnings determine whether a tax return is required. Unlike standard employment where payroll taxes are withheld, self-employed individuals must account for their own Social Security and Medicare contributions through self-employment tax, which is 15.3% on net earnings.

Business-related deductions affect taxable income. Expenses such as equipment purchases, home office use, and advertising costs can reduce net earnings. For example, if a dependent earns $1,000 from an online business but has $700 in deductible expenses, their net self-employment income is $300—falling below the $400 filing threshold. Keeping accurate records is essential to substantiate deductions.

Non-Filing Consequences

Failing to file a required tax return can lead to financial and legal consequences. If taxes are owed, penalties and interest begin accruing from the original filing deadline. The failure-to-file penalty is typically 5% of the unpaid tax per month, up to a maximum of 25%. If the IRS determines that a return was intentionally not filed to evade taxes, additional penalties or even criminal charges could apply.

Not filing can also impact financial opportunities. Dependents who fail to report earnings may have difficulty qualifying for financial aid, as the Free Application for Federal Student Aid (FAFSA) often requires tax return information. Additionally, unfiled returns can delay refunds, create complications when applying for loans, and trigger IRS audits if discrepancies arise. Keeping up with filing requirements ensures compliance and prevents unnecessary setbacks.