Publication 929 - Tax Rules For Children And Dependents

Earned income

Unearned Income Only

him on their income tax return. He received $200

taxable interest income and earned $2,750 from

Exemption

A dependent must file a return if all his or her

a part-time job.

Gross income

income is unearned income, and the total is

He does not have to file a tax return because

more than the amount listed in the following

his total income of $2,950 ($200 interest plus

Itemized deductions

table.

$2,750 in wages) is not more than $3,050, the

Standard deduction

amount on line 5 of his filled-in Filing Require-

Marital Status

Amount

Unearned income

ment Worksheet for Most Dependents (shown

Single

next).

Under 65 and not blind . . . . . . . .

$ 850

This part of the publication discusses the filing

Either 65 or older or blind . . . . . . .

$2,100

Filing Requirement Worksheet

65 or older and blind . . . . . . . . . .

$3,350

requirements for dependents, who is responsi-

for Most Dependents

Married*

ble for a child’s return, how to figure a depen-

1. Enter dependent’s earned

Under 65 and not blind . . . . . . . .

$ 850

dent’s standard deduction and exemption (if

income plus $300 . . . . . . . . . .

$ 3,050

Either 65 or older or blind . . . . . . .

$1,850

any), and whether a dependent can claim ex-

2. Minimum amount . . . . . . . . . . .

850

65 or older and blind . . . . . . . . . .

$2,850

emption from federal income tax withholding.

3. Compare lines 1 and 2. Enter

*If a dependent’s spouse itemizes deductions on a

the larger amount . . . . . . . . . .

3,050

separate return, the dependent must file a return if

4. Maximum amount . . . . . . . . . .

5,150

the dependent has $5 or more of gross income

(earned and/or unearned).

5. Compare lines 3 and 4. Enter

Filing Requirements

the smaller amount . . . . . . . . .

3,050

6. Enter the dependent’s gross

Example. Sarah is 18 and single. Her par-

Whether a dependent has to file a return gener-

(total) income. If line 6 is more

ents can claim an exemption for her on their

ally depends on the amount of the dependent’s

than line 5, the dependent must

income tax return. She received $970 of taxable

file an income tax return. If the

earned and unearned income and whether the

interest and dividend income. She did not work

dependent is married and his or

dependent is married, is age 65 or older, or is

during the year.

her spouse itemizes deductions

blind.

She must file a tax return because she has

on a separate return, the

unearned income only and her total income is

A dependent may have to file a return

dependent must file an income

more than $850. If she were blind, she would not

even if his or her income is below the

tax return if line 6 is $5 or more.

$ 2,950

have to file a return because she has unearned

amount that would normally require a

CAUTION

income only and her total income is not more

return. See Other Filing Requirements, later.

than $2,100.

The following sections apply to dependents

Example 2. The facts are the same as in

with:

Election to report child’s unearned income

Example 1 except that Joe had $600 taxable

•

on parent’s return. A parent of a child under

Earned income only,

interest income.

age 18 may be able to elect to include the child’s

•

He must file a tax return because his total

Unearned income only, and

interest and dividend income on the parent’s

income of $3,350 ($600 interest plus $2,750

•

return. See Parent’s Election To Report Child’s

Both earned and unearned income.

wages) is more than $3,050, the amount on line

Interest and Dividends in Part 2. If the parent

To find out whether a dependent must file, read

5 of his filled-in worksheet (shown next).

makes this election, the child does not have to

the section that applies, or use Table 1 on the

file a return.

Filing Requirement Worksheet

previous page.

for Most Dependents

Earned and

Earned Income Only

1. Enter dependent’s earned

Unearned Income

income plus $300 . . . . . . . . . .

$ 3,050

A dependent must file a return if all his or her

2. Minimum amount . . . . . . . . . . .

850

A dependent who has both earned and

income is earned income, and the total is more

3. Compare lines 1 and 2. Enter

unearned income generally must file a

the larger amount . . . . . . . . . .

3,050

than the amount listed in the following table.

return if the total income is more than

4. Maximum amount . . . . . . . . . .

5,150

line 5 of the following worksheet.

Marital Status

Amount

5. Compare lines 3 and 4. Enter

Filing Requirement Worksheet

the smaller amount . . . . . . . . .

3,050

Single

for Most Dependents

6. Enter the dependent’s gross

Under 65 and not blind . . . . . . . .

$5,150

(total) income. If line 6 is more

Either 65 or older or blind . . . . . . .

$6,400

1. Enter dependent’s earned

than line 5, the dependent must

65 or older and blind . . . . . . . . . .

$7,650

income plus $300 . . . . . . . . . .

file an income tax return. If the

Married*

2. Minimum amount . . . . . . . . . . .

850

dependent is married and his or

Under 65 and not blind . . . . . . . .

$5,150

3. Compare lines 1 and 2. Enter

her spouse itemizes deductions

Either 65 or older or blind . . . . . . .

$6,150

the larger amount . . . . . . . . . .

on a separate return, the

65 or older and blind . . . . . . . . . .

$7,150

4. Maximum amount . . . . . . . . . .

5,150

dependent must file an income

*If a dependent’s spouse itemizes deductions on a

5. Compare lines 3 and 4. Enter

tax return if line 6 is $5 or more.

$ 3,350

separate return, the dependent must file a return if

the smaller amount . . . . . . . . .

the dependent has $5 or more of gross income

6. Enter the dependent’s gross

(earned and/or unearned).

(total) income. If line 6 is more

Age 65 or older or blind. A dependent

than line 5, the dependent must

who is age 65 or older or blind must file

Example. William is 16. His mother claims

file an income tax return. If the

a return if his or her gross (total) in-

dependent is married and his or

an exemption for him on her income tax return.

come is more than line 7 of the following work-

her spouse itemizes deductions

He worked part time on weekends during the

on a separate return, the

sheet.

school year and full time during the summer. He

dependent must file an income

earned $5,600 in wages. He did not have any

tax return if line 6 is $5 or more.

unearned income.

Filing Requirement Worksheet

for Dependents

He must file a tax return because he has

Who Are Age 65 or Older or Blind

earned income only and his total income is more

than $5,150. If he were blind, he would not have

Example 1. Joe is 20, single, not blind, and

1. Enter dependent’s earned

to file a return because his total income is not

a full-time college student. His parents provide

income plus $300 . . . . . . . . . . . .

more than $6,400.

most of his support and claim an exemption for

2. Minimum amount . . . . . . . . . . . .

$ 850

Publication 929 (2006)

Page 3

Publication 929 - Tax Rules For Children And Dependents - 2006 Page 3

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