Tax regulations vary for teenagers, other young people

Just because a person is under age 18, it doesn't mean that they won't have certain tax obligations at filing time.

For example, current IRS rules state that a dependent must file a tax return if they have a part-time job or some other source of earned income that results in earnings of at least $5,700. If that individual is blind, different limits apply.

For unearned income, which includes things like interest and dividends, a person must file a return if they are under 65, not blind, and made at least $950.

People who have both earned and unearned income in any given tax year but are not sure if they need to file a return can consult the IRS Web site for a work sheet that will help them determine whether they need to do so.

A separate IRS rule states that a child can earn up to $1,900 in investment income (as of 2009) without having it taxed at the parent's rate. For parents and children who require more information about such matters, consulting with a skilled tax preparer is a good place to start.

Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.
Posted To: Tax Ranger's Blog By: Tax Ranger On: Tuesday, February 09, 2010
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