How to File Taxes as a Minor: Steps and Requirements Explained
Learn when and how minors need to file taxes, what documents are required, and the steps to complete the process accurately and efficiently.
Filing taxes as a minor might seem complicated, but the process is more straightforward than it appears. Whether you earned money from a part-time job, freelancing, or investments, understanding your tax obligations helps avoid penalties and may secure a refund if too much was withheld from your paycheck.
Minors follow many of the same tax rules as adults, but income thresholds, dependency status, and filing procedures require special attention.
Determining If You Need to File
A minor’s tax filing requirement depends on income type and amount. The IRS sets annual thresholds to determine if filing is necessary. For 2024, a dependent must file if earned income exceeds $14,600 or if unearned income, such as interest or dividends, is more than $1,250. If both types exist, filing is required if the total exceeds the larger of $1,250 or earned income plus $400.
Even if income falls below these limits, filing may be beneficial. If an employer withheld federal income tax, filing is the only way to claim a refund. This is common for minors with part-time jobs, as employers often withhold taxes automatically. Self-employed minors must file if net earnings exceed $400, as self-employment tax applies regardless of age.
Parents can sometimes report a child’s unearned income on their own return using Form 8814. This simplifies reporting but may result in a higher tax rate. This option is only available if the child’s unearned income consists solely of interest and dividends and does not exceed $12,500. While it eliminates the need for the minor to file separately, it may not always be the best financial choice.
Gathering Income Documents
Collecting income records ensures accuracy and prevents delays. Minors with traditional jobs receive Form W-2 from employers by January 31. If multiple jobs were held, a W-2 is issued for each.
Freelancers or gig workers may receive Form 1099-NEC if a company paid them at least $600. Those using platforms like PayPal or Venmo receive Form 1099-K if earnings exceed $20,000 and 200 transactions. Even if these thresholds aren’t met, all income must be reported, so keeping personal records is essential.
Investment earnings, such as interest or dividends, appear on Form 1099-INT or 1099-DIV. These forms, sent by banks and brokerage firms, summarize taxable income from savings accounts, stocks, or mutual funds. If an account is managed by a parent but belongs to a minor, the Social Security number on the account determines who reports the income.
Filing Status and Requirements
Filing status affects tax rates and available deductions or credits. Most minors file as “Single” unless married, which is rare. The IRS defines Single filers as individuals who are unmarried or legally separated as of December 31. In 2024, the standard deduction for dependents with earned income is $14,600, which can reduce taxable income to zero.
Dependency status also matters. If a minor is claimed as a dependent, they cannot take a personal exemption but may still qualify for certain deductions or credits. Parents can claim dependents if they provide more than half of their financial support and the child lives with them for most of the year. If a minor supports themselves financially and meets income thresholds, they may need to file independently, affecting their parents’ tax benefits.
Minors with investment income may be subject to the “kiddie tax,” which taxes unearned income over $2,500 at their parent’s tax rate. This rule prevents parents from shifting income to their children to take advantage of lower tax brackets. If a minor qualifies for education-related credits, such as the American Opportunity Credit, they must file their own return to claim them unless claimed as a dependent.
Signing the Return
A tax return must be signed to be valid. The IRS does not impose a strict age requirement, meaning a minor can sign their own return if they understand the responsibility. If a child is too young, a parent or legal guardian may sign on their behalf.
If a parent or guardian signs, they must include the phrase “By [Parent’s Name], Parent for Minor Child” next to the signature. This ensures the IRS recognizes the return as legally filed. If the IRS questions a minor’s signature, they may request additional verification, especially if the return includes complex tax positions or credits.
E-Filing Steps
E-filing is the fastest way for minors to submit a tax return. It reduces errors, speeds up processing, and allows direct deposit of refunds.
Free File is available for those with an adjusted gross income (AGI) of $79,000 or less in 2024. Many minors qualify, especially if they only have W-2 income. If a return includes self-employment earnings or investment income, paid tax software may be necessary to include all required forms.
If a minor is claimed as a dependent, their Social Security number must match IRS records to avoid rejection. The system flags duplicate filings, so if a parent has already claimed them, they cannot file as an independent taxpayer. Minors who owe taxes can pay electronically through IRS Direct Pay or a debit/credit card, though processing fees may apply. If a refund is expected, choosing direct deposit ensures the fastest turnaround, typically within 21 days.