child tax free income threshold


R

Ronald

What is the maximum income a child under 14 may earn tax
free under their own social security number while still
allowing the parent to retain them as a dependant.
 
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A

Arthur Kamlet

Ronald said:
What is the maximum income a child under 14 may earn tax
free under their own social security number while still
allowing the parent to retain them as a dependant.
There is no limit.

If the parent provides more than half the child's support,
then the support test is met.

However if you are asking what is the limit on child's AGI
before the kiddie tax kicks in, just let us know.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
R

Ronald

What is the maximum income a child under 14 may earn tax
free under their own social security number while still
allowing the parent to retain them as a dependant.

In particular I wanted to place money in the stock market
for my grandson and assuming is rises, sell it before it
reaches the taxable limit in any given year.
 
B

Barney Bird

Ronald said:
What is the maximum income a child under 14 may earn
tax free under their own social security number while
still allowing the parent to retain them as a dependant.
There is no limit for children under age 19.

Barney Byrd
 
H

Herb Smith

What is the maximum income a child under 14 may earn tax
free under their own social security number while still
allowing the parent to retain them as a dependant.
There is no income limit, as long as the parent meets the
other 4 rules for claiming a dependent. Your child's income
is usually not a concern until they turn 19, or if a
student, until age 24.

If the child only has unearned income, his standard
deduction is limited to $750. Income above that is taxable.
If the child has earned income (paper route, lawn mowing,
etc) the standard deduction is the total of his earned
income + $250, to a maximum of $4,750.

Thus, if the child has a part-time job (earns $3,000) and
investments (interest of $600) his standard deduction is
limited to $3,250, and he will owe tax on the "excess"
unearned income ($350).
 
B

Barney Bird

Barney Bird said:
What is the maximum income a child under 14 may earn
tax free under their own social security number while
still allowing the parent to retain them as a dependent.

There is no limit for children under age 19.
I should have said that for children under age 19, your
eligibility to claim a dependency exemption for them is
unaffected by how much they earn. There is a limit on how
much the child can earn tax-free. The amount a child can
earn tax-free varies depending on whether he is under or
over age 14 and whether the income involved is earned
compensation or investment income.

Barney Byrd
 
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R

Ronald

I should have said that for children under age 19, your
eligibility to claim a dependency exemption for them is
unaffected by how much they earn. There is a limit on how
much the child can earn tax-free. The amount a child can
earn tax-free varies depending on whether he is under or
over age 14 and whether the income involved is earned
compensation or investment income.
The child is 5 years old and he is earning investment income
from the sale of stocks & bonds
 
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B

Barney Bird

Ronald said:
The child is 5 years old and he is earning investment
income from the sale of stocks & bonds.
You must file a return for the child if his investment
income exceeds $750. You'll find detailed information
regarding filing requirements for children and dependents in
IRS Publication 929. For your convenience I've pasted links
below both to the html and the pdf versions of the pub.

http://www.irs.gov/formspubs/page/0,,id=12829,00.html

http://www.irs.gov/pub/irs-pdf/p929.pdf

Barney Byrd
 

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