Does my son need to file a tax return if I claim for him?

Last Updated at: April 06, 2020
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Does my son need to file a tax return if I claim him_ income tax returns

Since technology is growing at a higher rate, children learn their regular subjects on the internet.  Previously, children were not given the exposure to what they are being given in today’s world. However, they are not just smarter in the way they talk, but even in choosing their career. They can decide, determine and exercise their talents in a better way. As the child moves towards adulthood, the parents face several milestone decisions. If a minor child (below the age of 18), then it is the adult’s (who are around the child) responsibility to educate the child on taxes or the parent/guardian should be responsible in paying the income taxes on behalf of the earning child. There is no minimum age in filing the income tax returns for any person.

Further in this article, let us see the criteria or the conditions for a parent to claim his/her child’s income tax return.

Does a person’s son need to file a tax return if the person (parent) claims for the child?

Here, the son needs to file taxes if he is earning an income which is more than Rs.1500 per month. The amount which he gets can be an earned one or an unearned one. There are two cases here.

  • If the son is below the age of 18

An earning child, who is below the age of 18, has to file his/her income taxes. But since the son/daughter is liable on the parent, the parent can take control of paying the income taxes of their child. If your son is below the age of 18, and he is earning more than Rs.1500, then as a parent, you will have to pay his taxes on his behalf. Only if the child is a minor, the parent can claim the income tax returns of the child. But there are a few exceptions where even though the child is a minor, the parent cannot claim the income tax returns (ITR) of the child.

  • If the son is above the age of 18

An earning son, who is above the age of 18, have to file his income taxes on his own. Since he is major, he has the right to decide and make his requirements accordingly. So, he is eligible to file his income taxes. He should be taught in a proper way of taking care of his legal requirements. If the child is above the age of 18, then the parent cannot claim the ITR of their child.

File income tax returns now

What are the types of Income received by a child?

There are two types of income for the minor child. They are earned money and unearned money.

  • Earned money

If the minor participates in any TV shows, competitions and sports tournament and win the allotted price amount or if they earn by part-time jobs or own business they are earned money.

  • Unearned money

If the minor student does not earn money by their hard work instead they get money as a gift for any festive days from their well-wisher, relatives and grandparents for their future, then they are unearned money.  

What is the meaning of clubbing the money?

Clubbing of the parent’s money and the child’s money (income) can only be possible if the child is a minor (below the age of 18). Clubbing the money means collaborating or putting together the income of the parent and their child. According to the Income Tax Act, if a minor, who earns money from his/her own businesses or part-time jobs, then the money earned can be clubbed with their parent’s income. If both parents of the minor are working then the money earned by the minor will be clubbed with the one who earns the highest salary. If he/she is a major (18 and above), then the income tax should be paid independently by the child.

8 essential things to know before a child files his/her income tax returns:

  • Both the parent and the child should get to know about gross earnings, income taxes, deductions for FICA and many more legal financial terms. 
  • People should understand the social security, Medicare, perks and benefits of earning. 
  • If the child’s income exceeds a certain amount, then they have to educate on the process, legal affairs, income tax forms, etc. 
  • The children have to save a copy of the expenses made during that whole year for reference and safety purpose.        
  • Two basic information has to be instructed to the child on knowing them. They are the Taxpayer name and the Tax identification number. 
  • The child should understand that the tax records are highly confidential and the seriousness behind it.
  • Allow the child to sign their own tax return forms.
  • Always contacting a tax professional or a legal advisor is safer and more reliable.

 

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Does my son need to file a tax return if I claim for him?

246

Since technology is growing at a higher rate, children learn their regular subjects on the internet.  Previously, children were not given the exposure to what they are being given in today’s world. However, they are not just smarter in the way they talk, but even in choosing their career. They can decide, determine and exercise their talents in a better way. As the child moves towards adulthood, the parents face several milestone decisions. If a minor child (below the age of 18), then it is the adult’s (who are around the child) responsibility to educate the child on taxes or the parent/guardian should be responsible in paying the income taxes on behalf of the earning child. There is no minimum age in filing the income tax returns for any person.

Further in this article, let us see the criteria or the conditions for a parent to claim his/her child’s income tax return.

Does a person’s son need to file a tax return if the person (parent) claims for the child?

Here, the son needs to file taxes if he is earning an income which is more than Rs.1500 per month. The amount which he gets can be an earned one or an unearned one. There are two cases here.

  • If the son is below the age of 18

An earning child, who is below the age of 18, has to file his/her income taxes. But since the son/daughter is liable on the parent, the parent can take control of paying the income taxes of their child. If your son is below the age of 18, and he is earning more than Rs.1500, then as a parent, you will have to pay his taxes on his behalf. Only if the child is a minor, the parent can claim the income tax returns of the child. But there are a few exceptions where even though the child is a minor, the parent cannot claim the income tax returns (ITR) of the child.

  • If the son is above the age of 18

An earning son, who is above the age of 18, have to file his income taxes on his own. Since he is major, he has the right to decide and make his requirements accordingly. So, he is eligible to file his income taxes. He should be taught in a proper way of taking care of his legal requirements. If the child is above the age of 18, then the parent cannot claim the ITR of their child.

File income tax returns now

What are the types of Income received by a child?

There are two types of income for the minor child. They are earned money and unearned money.

  • Earned money

If the minor participates in any TV shows, competitions and sports tournament and win the allotted price amount or if they earn by part-time jobs or own business they are earned money.

  • Unearned money

If the minor student does not earn money by their hard work instead they get money as a gift for any festive days from their well-wisher, relatives and grandparents for their future, then they are unearned money.  

What is the meaning of clubbing the money?

Clubbing of the parent’s money and the child’s money (income) can only be possible if the child is a minor (below the age of 18). Clubbing the money means collaborating or putting together the income of the parent and their child. According to the Income Tax Act, if a minor, who earns money from his/her own businesses or part-time jobs, then the money earned can be clubbed with their parent’s income. If both parents of the minor are working then the money earned by the minor will be clubbed with the one who earns the highest salary. If he/she is a major (18 and above), then the income tax should be paid independently by the child.

8 essential things to know before a child files his/her income tax returns:

  • Both the parent and the child should get to know about gross earnings, income taxes, deductions for FICA and many more legal financial terms. 
  • People should understand the social security, Medicare, perks and benefits of earning. 
  • If the child’s income exceeds a certain amount, then they have to educate on the process, legal affairs, income tax forms, etc. 
  • The children have to save a copy of the expenses made during that whole year for reference and safety purpose.        
  • Two basic information has to be instructed to the child on knowing them. They are the Taxpayer name and the Tax identification number. 
  • The child should understand that the tax records are highly confidential and the seriousness behind it.
  • Allow the child to sign their own tax return forms.
  • Always contacting a tax professional or a legal advisor is safer and more reliable.

 

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Senior Executive - Content in Vakilsearch | Former TEDxSKCET Licensee | Content Marketing | Psychology | Engineering (IT) | Google Developers Group (GDG) co-organizer | WTM Ambassador