Income Taxes for Children

If you're a parent, your child's taxable income is very likely linked to yours. In most cases, you may be able to include their income on your tax return. In other cases, they'll have to file their own tax return or you will have to file a separate return on their behalf. Depending on the level of your income, including their income on your tax return may result in higher income tax than if you prepare a separate return for your child.

Whether your child needs to file a tax return depends on a number of factors, including their age and the type of income that is being reported.

Earned and unearned income for a child

In general, your child must file a return if:

1. Unearned income (such as investment income from dividends or interest) was more than $1,350 for 2025 and 2026.
2. Earned income (income from employment) was more than the standard deduction.
3. Gross income was more than the larger of $1,350, or earned income plus $450.
4. Note: If the child earned more than $400 of self-employment income, they must pay self-employment taxes, even if they aren't required to file an income tax return. 

See IRS Publication 8814 and IRS Publication 8615 or your tax advisor for more information.

Age requirements

The above income amounts apply to any child who:

• Is age 18 or under on December 31 and whose earned income does not exceed half the annual expenses for the child's support, or
   
• Is a full-time student over 18 and under 24 on December 31 and whose earned income does not exceed half the annual expenses for the child's support.

What about a refund?

Even if your child isn't required to file a tax return, you should consider doing so if they are owed a tax refund.