question.jpgIn Federal Income Tax

Does my child have to file a tax return?

If the child is a dependent, he or she only has to file a tax return if he or she has more than a certain income ($5,150 in 2006). If the child is a dependent, however, the child should not count him or herself as an exemption - he or she should check the box marked “claimed as a dependent.” Moreover, if the child earns more than $850 in investment income, the child should file a tax return.

Even if the child does not earn the minimum required to necessitate a tax return, he or she should file if the child had income withheld from his or her pay, as he or she may be entitled to a refund.