Also, if still under his parents, would his money be taxed.
2007-07-02 11:22:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
If he is emancipated he pays on his own.
If under his parents he is still taxed, but under their tax bracket, as other household income. Although most children do not have that kind of money, there are plenty who do work, and they are not exempt from taxes.
2007-07-02 11:26:32 · answer #1 · answered by Landlord 7 · 0⤊ 0⤋
The US does not tax what you HAVE. It taxes income. If the kid has $1 billion, he can keep it in a cookie jar and live comfortably for his entire life with ZERO income.
2007-07-02 13:00:22 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes. Once a minor makes more than a certain amount (somewhere between $3000 and $4000) they need to file their own return.
My 17 yr old daughter broke that limit by about $100.00 last year and had to file her own return.
2007-07-02 11:27:05 · answer #3 · answered by Tim 7 · 0⤊ 0⤋
No, there is no yearly taxation on existing money. Only newly-earned money is taxable.
2007-07-02 12:10:10 · answer #4 · answered by Sgt Pepper 5 · 0⤊ 0⤋