Key Takeaways
- The Harsh Truth: Minors may need to file a tax return depending on their income if they earn more than the standard deduction for earned income or meet specific thresholds for unearned income.
- Dependents And Taxes: Being claimed as a dependent doesn’t exempt minors from filing taxes if they meet the income thresholds. The exact thresholds can vary each tax year.
- Part Time Jobs: A minor earning wages might have taxes withheld from their paycheck and will need to file a return to find out if they owe additional taxes (or qualify or refunds).
- Tax Benefits For Minors: Just as they might be required to file taxes, minors may also qualify for certain benefits, such as the standard deduction or the EITC.
- Tax Penalties: Yes, even minors can be subjected to failure to file and failure to pay penalties, so make sure that they have access to all the assistance they need to make the tax process easier on them.
- Filing a Return: Minors must report their income using a W-2 form of their own, not on a parent’s. Likewise, the tax return must be theirs, even if they are being claimed as dependents by their parents or guardian.
This should come as no surprise to anyone, but the IRS sees little difference between minors and adults when it comes to filing and paying taxes. Where you might see minors with summer jobs, young adults getting their first job out of college, middle-aged professionals climbing the corporate ladder or retirees trying to keep busy, the IRS sees only one thing: Taxpayers.
A minor having tax duties is perhaps not a topic at the top of everyone’s mind, but it’s far from an undefined subject under U.S. law. Simply put, any minors making money over a certain threshold is subject to the same income taxes that you or have to deal with. But what are these thresholds? How are they defined? And perhaps more important of all, how does a minor (or even a child) file their own tax return?
In this article, we’ll go over the rules that apply to minors when it comes to paying income taxes and how their legal status affects how, when, and how much they have to report and pay, as well as the benefits they’re eligible for and the limitations that apply to them. Keep reading!
Do Minors Have To File Taxes?
Anyone has to file taxes if they earned enough income during the year for their tax obligations to kick in. For minors, their income must be greater than $15,000 (in 2025). The same goes for unearned income, which is the umbrella term for dividends, interest, and capital gains; for those, the threshold is a bit lower at $1,350 (again, in 2025).
There’s a pervasive belief in the general population that, because a child has been claimed by their parent or guardian as a dependent, then the child doesn’t have to file taxes even if they’re earning income. The truth is that being claimed as a dependent offers no tax exempt status for anyone, not even minors.
Still, as taxpayers, minors are entitled to a standard deduction like the rest of us, although it works a little differently than an adult’s standard deduction, and in fact shares some similarities with tax brackets. For the 2025 tax year, a minor’s unearned income will be treated as follows: the first $1,350 is covered by the standard deduction (meaning the taxes paid will be zero), the next $1,350 is taxed at the child’s income tax rate, and any amount exceeding $2,700 is taxed at the parent’s marginal tax rate.
When Children Must File Tax Returns
Any child who meets the following conditions is obligated to file their taxes:
- If the child has unearned income over $1,350 for the 2025 tax year.
- If the child’s earned income goes above $15,000 for the 2025 tax year.
- In case the child has earned and unearned income both, and their gross income (is greater than $14,600 (or if it’s their earned income plus $450, whichever comes first).
- Finally, if the minor’s earnings for self-employment are $400.
There are other rules that apply only for minors who are blind, owe Social Security and Medicare or Social Security on tips received at work (that weren’t reported to their employer), or those who get paid by churches exempt from Social Security and Medicare tax obligations.
Your Child Might Still Benefit From Filing A Tax Return
Even if a minor doesn’t meet the requirements to file a tax return, it might still be a good idea to file in order to obtain some benefits, such as obtaining a refund from a credit or just to start contributing towards their retirement early; even just giving them a hands-on education on personal finances and dealing with the reality of taxes makes it a good idea. Here are some of the benefits of minors filing a tax return even if they technically don’t have to:
- Their income taxes, though low, were still withheld from their wages.
- More importantly, because they qualify for the EITC.
- If they owe recapture taxes.
- They (or, let’s be honest, you) think it’s a good idea for them to open an individual retirement account (IRA).
Tax Credits Available To Children
Like we mentioned before, being a taxpayer brings about most of the same benefits for minors that adults have access to. This includes regular refundable or non-refundable education credits like the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC). However, they still must meet the eligibility criteria for each of those credits.
Minors who are eligible stu”dents can claim the AOTC as long as no one claims them as a dependent on their tax return. This means they can get qualifying expenses paid for during each tax year covered by the AOTC. To do so, they must use Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits); they are also required by law to include the school’s Employer Identification Number on that same form in order to qualify.
For the LLC, 20% of the first $10,000 of qualified education expenses (up to a maximum of $2,000 per return) gets covered, and it is not refundable. The amount you get gets phased out when your MAGI reaches between $80,000 and $90,000 (or, if filing a joint return, between $160,000 and $180,000. Then, you simply can’t claim the credit at all once your MAGI crosses the $90,000 threshold for single filers or $180,000 for joint filers.
Helping A Minor File A Tax Return
You can absolutely help your child to file their own tax return when the time comes, but it’s important to remember that, legally speaking, the primary responsibility for the filing and all the information they’re about to report falls entirely on them. This has a few exceptions, however, as stated in IRS Publication 929 which reads: “If a child can’t file their own return for any reason, such as age, the child’s parent, guardian, or another legally responsible person must file it for the child.”
The reason why it’s very important to remember this and offer them guidance through the whole process is because, as taxpayers, minors are not exempt from getting notices or even being audited by the IRS. Were this to happen, the first thing you should do is contact the IRS and inform them that the tax return in question is that of a minor. IRS Pub. 929 also touches upon this matter: “The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority.”
Can I Report My Child’s Income On My Tax Return?
Technically, yes. Your child or the minor in question can forgo filing their own tax return so that you can report it in yours using IRS Form 8814, but doing so has one important consequence you should keep in mind—reporting your child’s income in your own tax return can increase your tax rate; it depends on your child’s unearned income.
These are the conditions a minor must meet for you to be able to report their income on your tax return:
- The minor’s income must consist only of unearned income.
- Their age is below 19 (or 24 if they’re full time students) at the end of the tax year.
- Their gross income was less than $13,500 in 2025.
- The minor did not file a joint return in the same year.
- You are the parent whose return must be used when applying the special tax rules for children.
- Federal income tax was not withheld at all from the minor’s income.
- If self-employed, the minor did not pay any estimated tax for the year, and made no overpayments in the previous year.
Conclusion
Filing and paying taxes is just a part of being an adult in the U.S. That’s just a fact of life, so easing kids into that aspect of adulthood while they’re still young and have less things depending on them is probably a good idea. If they start filing their taxes after getting their first job, that’s just two birds with one stone. As a parent or guardian, the best way to do it is to discuss the topic as soon as they start making money of their own, being patient with them as they’ll have many questions, and then walking them carefully through the process once the time to file comes.
Even experienced taxpayers can have fumbles in their return from time to time, so you can also teach them about the importance of soliciting advice (or using tax preparation software if you use it) from tax professionals if the need arises.
Do Minors Have To Pay Taxes?: FAQ
1. Do minors need to file a tax return?
Minors may need to file a tax return depending on their income. If they earn more than the standard deduction for earned income (e.g., wages from a job) or meet specific thresholds for unearned income (e.g., investments), they are required to file. The exact thresholds can vary each tax year.
2. What is the difference between earned and unearned income for minors?
Earned income includes wages from part-time jobs, freelance work, or self-employment. Unearned income refers to earnings like interest, dividends, or capital gains from investments. The filing requirements differ for these types of income, with unearned income thresholds typically lower.
3. Can minors be claimed as dependents on their parents’ tax returns?
Yes, most minors can be claimed as dependents by their parents, which impacts their filing status and standard deduction. However, being claimed as a dependent doesn’t exempt them from filing taxes if they meet the income thresholds.
4. Do minors working part-time jobs pay taxes on their income?
If a minor earns wages, taxes may be withheld from their paycheck. They will need to file a return to determine if they owe additional taxes or qualify for a refund. Filing is required if their income exceeds the standard deduction.
5. How are taxes handled for minors with investment income?
Minors with investment income above a certain threshold must file taxes. In some cases, parents can include the minor’s investment income on their own return. However, this option depends on the amount and type of income.
6. Are minors eligible for tax benefits like credits or deductions?
Minors may qualify for certain benefits, such as the standard deduction or credits like the Earned Income Tax Credit (EITC), depending on their income and circumstances. They must meet the eligibility criteria to claim these benefits.
7. What happens if a minor doesn’t pay taxes when required?
Failure to file or pay taxes can lead to penalties, even for minors. It’s important to understand filing requirements and seek help if unsure. Tax software, school resources, or assistance from a tax professional can make the process easier.
Jacob Dayan
Entrepreneur • SEO Community Tax, LLC
In his capacity as CEO, Dayan has assembled a strong team of attorney practitioners, CPAs and enrolled agents to deliver superior customer service and expected results. His company Community Tax has set the standard for customer service in the tax resolution industry and is widely recognized as an industry leader by its peers. Jacob manages all day-to-day marketing efforts and business operations of Community Tax. As CMO, Jacob is responsible for all digital and offline marketing efforts.
