Review your children's tax filing requirements

Children who have income may have to file income tax returns. Here are the filing requirements for 2004.

If your child had wage income only during 2004, a tax return is required if wages exceeded $4,850. If the child earned less than $4,850 but employers withheld taxes, a tax return must be filed if you want a refund.

If your child had net self-employment earnings of $400 or more in 2004, a return is required and a self-employment tax of 15.3% is due. Income tax could be due if earnings exceeded $4,850.

If a child had investment income only during 2004 (such as dividends and interest), filing is required if the total exceeded $800.

If your child had both earned and investment income, a return is required if the total was more than the larger of (a) $800 or (b) $250 plus up to $4,600 of earned income.

.

© copyright 2005