A dependent child, under the age of 18, or 18 and earns less than half his own support (or age 19-23 and a full-time student) will have to file an income tax return for 2012 if any of the following situations apply.
1. The child’s unearned income was more than $950. This is generally income received from investments and other sources unrelated to employment services.
2. The child’s earned income was more than $5,950.
3. The child’s gross income was more than the larger of: 1) $950, or 2)the child’s earned income (up to $5,650) plus $300.
If a child has no tax liability, but did have taxes withheld, he should file a tax return to obtain a refund. To avoid having to file a return in the future to obtain a refund, the child should claim “Exempt” on his W-4 with his employer.
If your circumstances do not fit well in the scenario above, please don’t hesitate to call Ritter Adair & Associates, PC or send us an email with your question.
For additional questions regarding filing tax returns, contact Ritter Adair & Associates.