When does a teenager need to file a tax return

In most cases, you should prioritize claiming the American Opportunity Tax Credit first. It's particular useful after you've exhausted your four years for the American Opportunity Credit.

Shifting dependent status could also help your student get pandemic stimulus money. Other dependents — and their parents — lost out. Someone who was a dependent age 17 or older in , however, could get both stimulus payments as a tax credit by filing independently for Joanne Burke, a financial planner in Vienna, Va.

Burke claimed her daughter as a dependent on her taxes. This story has been updated to correct the amount of the standard deduction for the tax year. By Ingrid Case February 11, This can be true even though they are still your dependents for tax purposes. Generally, a child is responsible for filing his or her own tax return and paying any tax, penalties, or interest on that return. However, if your child does not pay the tax due on this income, the parents may be liable for the tax.

Moreover, if a child cannot file his or her return for any reason, such as age, the child's parent or guardian is responsible for filing a return on the child's behalf. Whether your child is required to file a tax return depends on the applicable standard deduction and how much earned and unearned income he or she had during the year.

Children over 17 don't get anything if they are dependents of their parents. These payments are not taxable income and do not count as unearned or earned income for parents or their children.

A child who has only earned income must file a return only if the total is more than the standard deduction for the year. Example : William, a 16 year old dependent child, worked part time on weekends during the school year and full time during the summer. He did not have any unearned income. He must file a tax return because he has earned income only and his total income is more than the standard deduction amount for She did not work during the year.

She must file a tax return because she has unearned income only and her total income is more than the unearned income threshold for He does not have to file a tax return.

Even if your child does not meet any of the filing requirements discussed, he or she should file a tax return if 1 income tax was withheld from his or her income, or 2 he or she qualifies for the earned income credit, additional child tax credit , health coverage tax credit, refundable credit for prior year minimum tax, first-time home buyer credit, adoption credit, or refundable American opportunity education credit.

See the tax return instructions to find out who qualifies for these credits. By filing a return, your child can get a refund. Social Security Administration. The White House. Retirement Planning. Roth IRA. Income Tax. Actively scan device characteristics for identification. Use precise geolocation data.

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Part Of. Tax Preparation. Getting Help. Tax Strategy. Tax Credits and Deductions. Retirement and Your Taxes. Tax Filing. Tax Refunds. Tax Security. Table of Contents Expand. Dependent Child Status. Reporting on Your Tax Return. Teaching Your Child About Taxes. The Bottom Line. Key Takeaways Children generally don't receive instruction in school on filing income taxes, so parents should teach their kids when and how to do it.

Dependents must file under certain circumstances if they have earned or unearned income. Other reasons to file include owing taxes, recovering withheld taxes, earning Social Security credits, qualifying for an earned income credit, and opening a retirement account.

Your child might be allowed to skip filing a separate tax return and include their income on your return under certain circumstances, such as only having unearned income interest, dividends, or capital gains.

What Is the Child Tax Credit for ? Do Minors Have to File Taxes?