Publication 929 - Tax Rules For Children And Dependents

3. Compare lines 1 and 2. Enter

Other Filing Requirements

Responsibility for

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

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

5,150

Some dependents may have to file a tax return

Child’s Return

5. Compare lines 3 and 4. Enter

even if their income is below the amount that

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

would normally require them to file a return.

6. Enter the amount from the

Generally, the child is responsible for filing his or

A dependent must file a tax return if he or

following table that applies to the

her own tax return and for paying any tax, penal-

dependent . . . . . . . . . . . . . . . .

she owes any other taxes, such as:

ties, or interest on that return. If a child cannot

•

Social security and Medicare taxes on tips

Marital Status

Amount

file his or her own return for any reason, such as

not reported to his or her employer,

Single

age, the child’s parent or guardian is responsible

•

Either 65 or older or

$1,250

Uncollected social security and Medicare

for filing a return on his or her behalf.

blind

or railroad retirement taxes on tips re-

Signing the child’s return. If the child cannot

65 or older and blind

$2,500

ported to his or her employer or on

sign his or her return, a parent or guardian can

Married

group-term life insurance,

sign the child’s name in the space provided at

Either 65 or older or

$1,000

•

Alternative minimum tax,

the bottom of the tax return. Then, he or she

blind

•

Recapture taxes, such as the tax from re-

should add: “By (signature), parent (or guardian)

65 or older and blind

$2,000

capture of an education credit, or

for minor child.”

•

Tax on a qualified plan, including an indi-

Authority of parent or guardian. A parent or

7. Add lines 5 and 6. Enter the total

vidual retirement arrangement (IRA), or

guardian who signs a return on a child’s behalf

8. Enter the dependent’s gross (total)

other tax-favored account. But if the de-

can deal with the IRS on all matters connected

income. If line 8 is more than line 7,

with the return.

pendent is filing a return only because of

the dependent must file an income

In general, a parent or guardian who does

this tax, the dependent can file Form 5329

tax return. If the dependent is

not sign the child’s return can only provide infor-

married and his or her spouse

by itself.

mation concerning the child’s return and pay the

itemizes deductions on a separate

child’s tax. That parent or guardian is not entitled

return, the dependent must file an

A dependent must also file a tax return if he

to receive information from the IRS or legally

income tax return if line 8 is $5 or

or she:

more. . . . . . . . . . . . . . . . . . . . .

bind the child to a tax liability arising from the

•

Received any advance earned income

return.

credit payments from his or her employers

Example 3. The facts are the same as in

Third party designee. A child’s parent or

in 2006,

Example 2 except that Joe is also blind. He does

guardian who does not sign the child’s return

•

Had wages of $108.28 or more from a

not have to file a return because his total income

may be authorized, as a third party designee, to

church or qualified church-controlled or-

of $3,350 is not more than $4,300, the amount

discuss the processing of the return with the IRS

ganization that is exempt from employer

on line 7 of his filled-in Filing Requirement Work-

as well as provide information concerning the

social security and Medicare taxes, or

sheet for Dependents Who Are Age 65 or Older

return. The child or the person signing the return

•

or Blind (shown next).

on the child’s behalf must check the “Yes” box in

Had net earnings from self-employment of

the “Third Party Designee” area of the return and

at least $400.

Filing Requirement Worksheet

name the parent or guardian as the designee.

for Dependents

If designated, a parent or guardian can re-

Who Are Age 65 or Older or Blind

Spouse itemizes. A dependent must file a

spond to certain IRS notices and receive infor-

return if the dependent’s spouse itemizes de-

mation about the processing of the return and

1. Enter dependent’s earned

ductions on a separate return and the depen-

the status of a refund or payment. This designa-

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

$3,050

tion does not authorize the parent or guardian to

dent has $5 or more of gross income (earned

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

850

receive any refund check, bind the child to any

3. Compare lines 1 and 2. Enter

and/or unearned).

tax liability, or otherwise represent the child

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

3,050

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

5,150

before the IRS. See the return instructions for

5. Compare lines 3 and 4. Enter

more information.

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

3,050

Should a Return Be

Designated as representative. A parent or

6. Enter the amount from the

guardian who does not sign the child’s return

following table that applies to the

Filed Even If Not

may be designated as the child’s representative

dependent . . . . . . . . . . . . . . . .

1,250

by the child or the person signing the return on

Required?

Marital Status

Amount

the child’s behalf. Form 2848, Power of Attorney

Single

and Declaration of Representative, is used to

Either 65 or older or

$1,250

designate a child’s representative. See Publica-

Even if a dependent does not meet any of the

blind

tion 947, Practice Before the IRS and Power of

filing requirements discussed earlier, he or she

65 or older and blind

$2,500

Attorney, for more information.

should file a tax return if either of the following

Married

If designated, a parent or guardian can re-

applies.

Either 65 or older or

$1,000

ceive information about the child’s return but

•

blind

Income tax was withheld from his or her

cannot legally bind the child to a tax liability

65 or older and blind

$2,000

income.

unless authorized to do so by the law of the state

•

He or she qualifies for the earned income

7. Add lines 5 and 6. Enter the total

4,300

in which the child lives.

8. Enter the dependent’s gross (total)

credit, the additional child tax credit, the

IRS notice. If you or the child receives a

income. If line 8 is more than line

health coverage tax credit, or the credit for

notice from the IRS concerning the child’s return

7, the dependent must file an

federal telephone excise tax paid. See the

or tax liability, you should immediately inform the

income tax return. If the dependent

tax return instructions to find out who qual-

is married and his or her spouse

IRS that the notice concerns a child. The notice

ifies for these credits. (If the dependent is

itemizes deductions on a separate

will show who to contact. The IRS will try to

not required to file and is filing only to get

return, the dependent must file an

resolve the matter with the parent(s) or guard-

a credit for federal telephone excise tax

income tax return if line 8 is $5 or

ian(s) of the child consistent with their authority.

paid, he or she can file using Form

more. . . . . . . . . . . . . . . . . . . . .

$3,350

Child’s earnings. For federal income tax pur-

1040EZ-T, Request for Refund of Federal

poses, the income a child receives for his or her

Telephone Excise Tax.)

personal services (labor) is the child’s, even if,

By filing a return, the dependent can get a re-

under state law, the parent is entitled to and

fund.

receives that income.

Page 4

Publication 929 (2006)

Publication 929 - Tax Rules For Children And Dependents - 2006 Page 4

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