If your child earns income Things can start to become complex when your children start earning incomes. Small amounts of income get a pass, but at some point you have to start filing returns for them. Click here for answer. Earned income is wages and tips. Click here for answer.
Unearned income is interest, dividends and other income from investments.
This is the special minimum standard deduction for a child claimed as a dependent on his parents' return. Click here for answer. This usually includes paper routes. Above that your kid has to pay Social Security tax. Even occasional babysitters could be hit by this.