Considerations

• In most circumstances, a child/dependant's income would not be reported on a parent's income tax return, and under no circumstances does the IRS require you to do so. Reporting a child's income on your tax return is elective, and only under certain circumstances. Whether the child has to file a return generally depends on the amount of earned and unearned income and whether the child is married or blind.
  
  

Earned Income

• If the child is single or married, and has only earned income (from wages) of $5,700 or more, then he or she must file a return. The limit rises to $7,100 if the child is blind and single, $7,900 if blind and married.
  
  

Unearned or Combined Income

• If the child is single or married, and has only unearned income amounting to $950 or more, then he or she must file a return. If the child is blind, the limit rises to $2,350 for single filers, and $2,050 for married filers.
  
  A child who has income combined from earned and unearned sources must file a return under certain conditions. To figure this, a worksheet provided by the IRS has you enter the amount of your earned income plus $300. You then enter the larger of this amount or $950. Finally, you enter the smaller of that amount and $5,700. If the total income -- earned and unearned -- is greater than the final amount entered on the worksheet, then the child must file a return.
  
  

Elective Reporting

• You may elect to report your child's unearned income from interest and dividends on your own return. The child must be under the age of 19, or under 24 if he or she is a full-time student. The unearned income must be less than $9,500, there must not have been estimated tax payments, and there must not have been any tax withheld under backup withholding. You can only report the income on your return if the child would otherwise be required to file a return of his or her own. Children whose parents take this step, and do not pass the threshold for reporting earned income, do not have to file their own returns.
  
  

Forms

• When reporting your child's unearned income, you must use IRS Form 8814 (one for each child) and attach it to your Form 1040. You can't use Form 1040A or 1040EZ when reporting a child's income on your return.