Some children receive investment income and are required to file a federal tax return. If a child cannot file his or her own tax return for any reason, such as age, the child's parent or guardian is responsible for filing a return on the child's behalf.
There are special tax rules that affect how parents report a child's investment income. Some parents can include their child's investment income on their tax return. Other children may have to file their own tax return.
Here are four facts from the IRS about the taxability of your child's investment income.
For more information on this topic, see Publication 929, Tax Rules for Children and Dependents. This booklet and Forms 8615 and 8814 are available at IRS.gov. You may also have them mailed to you by calling 800-TAX-FORM (800-829-3676).
TaxACT makes reporting your child's investment income easy. As you answer simple questions, TaxACT will complete Forms 8814 or 8615 for you. Start your tax return now!
Additional IRS Resources:
December 10 (Employees who work for tips)
If you received $20 or more in tips during November, report them to your employer - Details
December 15 (Corporations)
Deposit the fourth installment of estimated income tax for 2014 - Details
December 25 (Everyone)
Federal Holiday (Christmas Day) - Details