Does My US Child Need to File Taxes?
Many moms choose to give births in US, so that their children will be US citizens. However, those parents are not aware that their children may need to file taxes. US tax liability is not based on the age of a taxpayer, but the taxable income of a taxpayer. Therefore, even your child is young, who may still have the liability to file tax return.
There are three circumstances below, once your child meets one of them, he/she will need to file taxes.
a. Your US child has unearned income (including investment income, capital gains, interest, dividends, rent and royalty income) totally above 1,100 US dollar.
b. Your US child has earned income (salary) totally above 12,400 US dollar.
c. Your US child has income from both unearned income and earned income, which totally above 12,400 US dollar.
Besides, if your US child’s aggregate maximum value of all foreign financial accounts exceeded $10,000 at any time during the calendar year (1/1 to 12/31), he/she will also have to report FBAR to the US government.
Read our article below to learn more details:
Who Must File the FBAR? : https://www.ustaxproservice.com/blog/fbar
If you want to learn more about the tax liability of your US child,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
Also welcome to visit our website: https://www.ustaxproservice.com
(USTAX Service LLC)