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jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
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How much money can a dependent child earn before it is taxable

Customer Question

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Submitted: 9 years ago.
Category: Tax
Expert:  MequonCPA replied 9 years ago.


The largest standard deduction for a dependent is the greater of $850 or total wages plus $300, but in no case can the standard deduction be more than $5,350. Any income in excess of these amount is taxable.

Customer: replied 9 years ago.
This does not answer my question.
Expert:  jgordosea replied 9 years ago.


Someone claimed as a dependent will pay tax on a return if any of the following apply.

1. Unearned income (which includes taxable interest, ordinary dividends, and capital gain distributions) was more than $850.

2. Earned income (which includes wages, tips, and taxable scholarship and fellowship grants) was more than $5,350.

3. Gross income (which is the total of your unearned and earned income was more than the larger of

a. $850, or

b. their earned income (up to $5,050) plus $300.

For dependents the type of income as well as the amount is a factor in how much income they can have before paying tax.

If there is no unearned income (dividends, interest, etc) then they can earn $5,350 before they have to pay any tax.

But, if there is unearned income that is more than $850 there will be some tax due even if they have no other earnings.

I hope this is the information you need for the amount a dependent can earn before it is taxable.

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience: I've prepared all types of taxes since 1987.
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