How much earned income can my child, who is a dependent on my return, have to not have to pay any income taxes, using the standard deduction? I saw it says earned income + $300 for the standard deduction but my question is at what point will her income be too high to pay zero taxes? She only had $40 in interest income.
2007-04-07 08:35:07 · 2 answers · asked by Lisa M 2 in Business & Finance ➔ Taxes ➔ United States
even if she is a dependent she can have 5150 in income? what is she is NOT a dependent?
2007-04-07 08:41:04 · update #1
$5150 in total income for 2006. This is the standard deduction every single individual is entitled to. The earned income + $300 amount you are talking about actually determines whether or not she has to file a return, not whether she will owe any taxes.
2007-04-07 08:39:10 · answer #1 · answered by Amy F 3 · 0⤊ 0⤋
She can have up to $5,150 in wages subject to withholding and not owe any tax or need to file. Up to $300 of that can be unearned income and she still doesn't need to file or pay any tax.
For a single taxpayer not a dependent of another taxpayer it's $8,450.
Some other numbers to watch out for: More than $400 in self-employment income or more than $850 in any unearned income both require a return to be filed.
2007-04-07 09:16:23 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋