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
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
If you found this episode helpful, we would really appreciate if you would share it with somebody that you know.
Create a STAN Store - Click here to try it out!
Here's where you can find us! Follow along on Instagram for lots of free content for business owners daily!