Do minors have to file taxes?

Key takeaways:

• The IRS requires minors to file tax returns if they meet income thresholds, even if claimed as dependents.
• Minors with earned income over $14,600 in 2024 are required to file a tax return.
• A minor’s W-2 income must be reported on their own return, not on a parent’s.
• If a minor has over $1,300 in unearned income, the IRS requires the minor to file a tax return.
• Parents can report a child’s unearned income on their own return, but it may put them in a higher tax bracket.
• If a minor has both earned and unearned income exceeding certain thresholds, they must file.
• A minor can be claimed as a dependent regardless of their income, as long as other requirements are met.
• Minors earning more than $400 from self-employment must pay self-employment tax, even if they don’t meet the regular income threshold.
• A 16-year-old or other minor must file if they earn more than $14,600 in wages or $1,300 in unearned income, or have a combination of both.

When do minors have to file taxes?

The IRS requires that all taxpayers file returns, and that all taxpayers who meet certain income thresholds pay income tax. This includes minors (anyone under the age of 18), even if their parents claim them as dependents. That means if a minor earns money from a job or makes money from interest, they may need to file a return and potentially even pay tax.

Minors are required to file tax returns when they meet certain income limits. Whether or not a minor has to file also depends on the type of income they receive, earned or unearned.

Income limits

The amount of income a minor makes is a key factor in determining whether they need to file a return and pay tax. If the minor has a job, whether they’re a W-2 employee or self-employed as a babysitter or lawnmower, the IRS requires them to file a return in 2025 if they earn more than $14,600 in 2024.

Can I report my child's W-2 on my tax return?

No, you should not report your child’s W-2 income on your tax return. If your child has earned at least $14,600 in 2024, your child will need to file their own tax return. But even if your child hasn’t met the income threshold, it may still be beneficial for them to file. It could result in a refund if they’ve had tax withheld from their income.   

Unearned income requirements

Unearned income is income that wasn’t earned through work. This includes interest from a savings account, investment gains, and dividends. The threshold for unearned income is much lower than it is for earned income. If a minor receives more than $1,300 in 2024, that minor will need to file a tax return in 2025.

Can I claim unearned income on my child’s behalf? 

Yes, depending on the situation, you may be able to claim your child’s unearned income (income not earned through work, like interest or dividends) on your own tax return. If your child’s unearned income is from dividends and/or interest alone, you may be able to combine it with your income and claim it on your return. To do so, you’ll need to complete and include Form 8814 when you file with your return.

Keep in mind that claiming unearned income on your child’s behalf may end up putting you in a higher tax bracket. That means that any income you make over a certain threshold will be taxed at a higher rate. Filing a separate return for your child may help you avoid this.  

Combined income situations

What are a minor’s tax obligations if they have both earned and unearned income? Things get a bit more complicated.

If the minor’s gross income (their total combined earned and unearned income before tax) is the greater of $1,300 or the sum of their earned income plus $450. Essentially, this means that if the minor has earned income and also makes more than $450 in 2024 in unearned income, they will need to file a return in 2025.

Do I have to file taxes if my parents claim me as a dependent?

Yes, regardless of if your parents claim you as a dependent or not, the IRS requires that you file a return if you meet certain income thresholds. It’s a common myth that dependents do not have to file tax returns.

The IRS requires dependents to file tax returns if they make more than $14,600 in earned income, or more than $1,300 in unearned income in 2024. If a dependent has combined earned and unearned income, the dependent will be required to file if they make more than $450 in unearned income.

How much can a minor make and still be claimed as a dependent?

In general, you can claim a minor as a dependent, no matter how much money they make, as long as they meet the requirements.

To claim your child as a dependent, your child must

• Be under the age of 19 by the end of 2024, or if they are a full-time student, under the age of 24 (If permanently disabled, you can claim your child as a dependent at any age)
• Live with you for most of the year (more than half)
• Have a Social Security number
• Be your birth, adopted, step, or foster child, your sibling, half-sibling, or step sibling, or the child of any of these relations

Keep in mind that if the minor has unearned income greater than $1,300, claiming them as a dependent may result in losing eligibility for certain tax benefits or benefits being phased out.

Does a child have to pay self-employment taxes?

Yes, if a child earns more than $400 through self-employment, they will have to file a return and pay self-employment tax. This includes jobs that are normally thought of as “under the table,” like babysitting, mowing lawns, or walking dogs.

Take note that self-employment tax is separate from federal income tax. That means that even if a child doesn’t meet the earned income filing threshold of $14,600, they will still have to pay the 15.3% self-employment tax, which covers Medicare and Social Security.

Do 16-year-olds file taxes?

Whether or not a 16-year-old is required to file depends on how much and what kind of income they make. The same rules apply for all minors. That means if their earned income is greater than $14,600, their unearned income is greater than $1,300, or if they have both earned income greater than $450 and unearned income, a 16-year-old will need to file a tax return for 2024.

If you’re a working dependent minor, or your child is, understanding your tax obligations will help you plan and avoid surprises. Work with a Tax Pro who can address your questions and concerns, and help you create a tax planning strategy to get you every dollar you deserve. We’re open all year and here to help! Book your appointment today

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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