95. Tax Filing Requirements for Your Dependents: When Children Need to File Returns

 
 

Episode Highlights

0:14 - Child Tax Filing Requirements Intro

2:15 - W-2 Filing Rules Explained

3:14 - College Students as Dependents

4:54 - 1099 Income Special Rules

7:22 - Deducting Expenses for Teen Workers

Episode Summary

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We decode the confusing rules around when children and dependents need to file tax returns, covering both W-2 employment income and 1099 contractor payments.

• Children with W-2 income under $14,600 (2024 standard deduction) don't need to file unless they want to claim a refund
• Parents can still claim college students as dependents if providing over half their support
• 1099-NEC income has a much lower threshold - children must file if they earned over $400
• Self-employment taxes (15.3%) apply to 1099 income even when income tax doesn't
• Always track and deduct business expenses to reduce taxable profit on 1099 income
• Common deductions for teen workers include certification costs, mileage, and equipment

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94. Tax Law Updates to Know for Business Owners