As kids start earning money — from summer jobs, part-time work, or investment accounts set up in their name — many parents begin to wonder: “Does my child need to file an income tax return?”
The answer usually depends on how much the child earns and the type of income they receive. A teen with a part-time job may not owe any taxes, but filing a return could allow them to receive a refund if taxes were withheld from their paycheck. In other cases — particularly when a child has investment income or self-employment income — filing a return may actually be required.
When Does a Child Need to File a Tax Return?
For the 2025 tax year, a child who can be claimed as a dependent may need to file a federal tax return based on the type and amount of income they receive. A dependent generally must file if any of the following apply:
- Earned income (wages) exceeds $15,750 (the 2025 standard deduction for dependents), or
- Unearned income (interest, dividends, or capital gains) exceeds $1,350, or
- Gross income exceeds the greater of $1,350or (earned income + $450), capped at $15,750, or
- Net self-employment income is $400 or more
These thresholds apply to children who are still claimed as a dependent on a parent’s tax return.
Example: If your teenager earned $6,000 in 2025 working a summer job at a local ice cream shop, they typically would not owe federal income tax because their income is below the filing threshold. However, if taxes were withheld from their paycheck, filing a return could allow them to receive a refund of those withheld taxes.
This is why many teenagers file a tax return even when they are not required to —to receive a refund of taxes withheld from their paychecks.
š Read our blog post – Women and Wealth: Teaching Kids About Money
Can My Child File a Tax Return If I Claim Them as a Dependent?
Yes. A child can still file their own tax return even if you claim them as a dependent.
Filing a return does not prevent a parent from claiming the child, as long as the child still qualifies as a dependent under IRS rules.
A child might file their own return if they:
- Had taxes withheld from a paycheck and want to claim a refund
- Need to report investment income
- Have self-employment income
š Learn more about how taxes fit into a broader financial plan on our Tax Planning page.
What Counts as Earned vs. Unearned Income for Kids?
The IRS separates income into two categories when determining whether a child needs to file a tax return.
Earned income generally includes:
- Wages from a job
- Pay from part-time or seasonal work
- Self-employment income (babysitting, lawn care, tutoring, etc.)
Unearned income generally includes:
- Interest from savings accounts
- Dividends from investment accounts
- Capital gains from investments held in the child’s name
Because the filing rules differ by income type, it’s important to understand which category applies.
What Is the Kiddie Tax?
The “kiddie tax” is an IRS rule that can apply when a child has investment income, such as interest, dividends, or capital gains. When that income exceeds certain limits, part of it may be taxed at the parent’s marginal tax rate rather than the child’s lower rate.
For the 2025 tax year, the rule generally works like this:
- The first $1,350 of unearned income is covered by the child’s standard deduction
- The next $1,350 is taxed at the child’s tax rate
- Amounts over $2,700 are generally taxed at the parent’s marginal tax rate
The kiddie tax usually applies to children under age 18 and full-time students under age 24 who can still be claimed as dependents.
Importantly, this rule applies only to unearned income, such as investments. Earned income from a job is taxed at the child’s rate.
š Learn more about how investment accounts can fit into a child’s long-term financial plan on our Investment Planning page.
Can Parents Report a Child’s Investment Income on Their Own Tax Return?
In some situations, parents may be able to report a child’s investment income on their own tax return instead of filing a separate return for the child.
This option is generally available only when the child has no tax withholding or estimated tax payments and meets the IRS limits for unearned income. When this applies, parents may be able to include the income on their own return rather than filing a separate return for the child.
Because the rules can vary depending on the type and amount of income, families often consult with a tax professional before deciding how to file.
Do Children Need to File Connecticut State Taxes?
Children in Connecticut may also need to file a state income tax return if their income exceeds the state’s filing thresholds.
For the 2025 tax year, a Connecticut return is generally required if a Connecticut resident single filer — including a dependent — has gross income of $15,000 or more.
In many situations, if a child must file a federal tax return, they may also need to file a Connecticut return. However, state filing requirements can depend on several factors, including:
- Total income
- Filing status
- Whether the child is claimed as a dependent
- Whether the income was earned in Connecticut
Because federal and state rules can differ, families often review both sets of requirements or consult a tax professional when a child begins earning income.
Should a Child File a Tax Return Even If It’s Not Required?
Sometimes it still makes sense for a child to file a tax return even if they are not required to.
For example, a return may be worthwhile if:
- Taxes were withheld from a paycheck, and the child may be due a refund
- The child needs to report investment income
For many families, helping a child file their first return can also be a simple way to introduce basic tax and money concepts.
š Read our blog post – Talking with Your Teen About Student Loans, Debt, and Credit
What Parents Should Know About Kids and Taxes
Once kids begin earning money — whether from a summer job or investment income — tax questions often follow. Understanding when a child may need to file a return and how different types of income are treated can help families avoid surprises during tax season.
Because tax rules can vary based on income and family circumstances, many families review these questions with a tax professional when a child begins earning income.
At the same time, these conversations often connect to broader financial planning topics — such as saving, investing, and teaching children about money.
If you’d like to talk through how taxes fit into your broader financial picture, you can schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, Connecticut, to discuss your situation.
Have a quick question instead? Send us a note.
Kelsey Conklin is a CERTIFIED FINANCIAL PLANNER® professional who helps individuals and families plan for their financial future. Based in Glastonbury and Wilton, CT, she also specializes in financial planning for women, guiding her clients through divorce, widowhood, career transitions, caregiving responsibilities, retirement planning, investing, and managing longevity risks. As a female financial advisor, Kelsey is passionate about financial empowerment for women and provides personalized financial strategies designed to help women take control of their wealth with confidence and clarity. Whether you’re navigating major life changes or planning for retirement, she is committed to providing guidance tailored to your unique goals. Schedule a complimentary Women and Wealth introductory meeting with Kelsey and start building a financial plan designed for you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.