Submitted By: Terry
Answered: December 2, 2016 1:57 pm

Does a minor (age 14) have to pay income tax on earnings?

Dependents must file a tax return and pay taxes if income exceeds set limits. For 2016, a single dependent under age 65 who is not blind must file a return if any of the following applies:

  • Unearned income was over $1,050
  • Earned income was over $6,300
  • Gross income was more than the larger of (1) $1,050, or (2) earned income (up to $5,950) plus $350

Whether taxes are owed depends on the nature and amount of the income.

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Tax Glossary

Installment sale

A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.

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