Watch CBS News

When Children Are Required To File Tax Returns

By Amy E. Feldman

PHILADELPHIA (CBS) - When is the right time to teach your kid the facts of life (by which I mean, Uncle Sam's gonna take a bite out of that paycheck of yours, junior)? The IRS has an answer.

In 2001, then 14-year-old Sean Belnick borrowed $500 and with the advice of his stepfather started a business selling office chairs online. Now one the largest online-only office furniture stores, the young Mr. Belnick is worth $42 million. Oh! I wish I'd thought of that.

Other than making - or getting your kid to make - $42 million, one other thing you might not of have thought of is this - If your kid makes any money, when and how does he have to file a tax return?

If your kid is listed as a dependent on your tax form, he has to file his own taxes if he's under 65 and not blind, if he earned income over $5,950 or if he received unearned income over $950 - which is income that he didn't earn but received from dividends, investments, or from collecting social security or disability and the like.

Of course if your kid is worth $42 million, he can afford the taxes he'll have to pay on all the money he made.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.