A dependent must file a return if all of his or her income is earned income and is above certain amounts. And some dependents may have to file a return even if their income is below the amount that would normally require them to file.
For 2008, a dependent must file a tax return if:
Earned income is more than:
Single Filing Status
- $5,450 if under 65 and not blind
- $6,500 if either 65 or older or blind
- $7,550 if 65 or older and blind
Married Filing Jointly
- $5,450 if under 65 and not blind
- $6,500 if either 65 or older or blind
- $7,550 if 65 or older and blind
Unearned income is more than:
Single Filing Status
- $900 if under 65 and not blind
- $2,250 if either 65 or older or blind
- $3,600 if 65 or older and blind
Married Filing Jointly
- $900 if under 65 and not blind
- $1,950 if either 65 or older or blind
- $3,000 if 65 or older and blind
Any taxes are owed:
- Social Security and Medicare taxes on tips not reported to employer
- Uncollected Social Security and Medicare or railroad retirement taxes on tips not reported to employer or group-term life insurance
- Alternative Minimum Tax
- Recapture taxes
- Taxes on qualified plans, including individual retirement arrangement or another type of tax-favored return
- Advance earned income credit payments were received from employers
- Wages of $108.28 or more were earned from a church or church organization that is exempt from employer Social Security or Medicare taxes
- Net earnings from self-employment was at least $400
Any taxes are paid:
- Income tax was withheld from the dependent's income
- The dependent qualifies for a refundable credit:
Responsibility to File
The child is responsible for filing his or her own tax return and for paying any associated tax, penalties, and interest. If the child cannot file his or her own return due to age or any other reason, the parent or guardian is responsible for filing the return on the child's behalf.
If the child cannot sign his or her own tax return the parent can sign the child's name and add his or her own signature, notating the return was signed "By parent or guardian for minor child." If a parent or guardian signs the return, that person is authorized by the IRS to represent the child in all matters related to the tax return.
On federal income tax returns, any income a child receives in return for personal services or labor counts as the child's income, even if state law provides that the parent is entitled to the income.
The standard deduction for an individual who can be claimed as a dependent of another taxpayer is the greater of:
- $900
- Earned income plus $300, not to exceed the regular standard deduction ($5,450)
In some circumstances, the standard deduction is not allowed:
- A married dependent filing a separate return, where his or her spouse itemizes deductions
- A dependent who files a return for a period of less than 12 months due to a change in accounting period
- A nonresident or dual-status alien dependent, unless the dependent is married to a citizen or resident alien and chooses to be treated as a U.S. resident for the year
A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption, even if the person who can claim the dependent chooses not to.
For more information, see IRS Publication 929.