In a heated discussion early today 7 including me argue about when your child needs to file taxes for earn income.
I stated that if my company DataViking.com hire Diego (my son) for a photo use by DataViking.com on marketing or any other commercial business related use and he got paid let’s say $5,000 he would not have to file taxes.
I was called all kinds of names, and I got bit frustrated.
In one end I have one guy that is completely negative. Hi struggles in with cash and won’t do anything else to get ahead. Next to him is the new guy. So sure of his future, he denies my help to cut his learning time on website development to read a book and wait a year to get his online cash flow going. I don’t know why I would teach him about websites, I only being creating them for the last 11 years. In the other hand, make sense (NOT) to start making money in 1 year instead of now. But that’s its just me.
About the rest of the guys, well I will leave it to your imagination.
Diego would have to file taxes if any of the following apply.
- If unearned income was more than $950.
- If earned income was more than $5,700.
- If gross income was more than the larger of $950, or earned income (up to $5,400) plus $300.
I guess Diego earn good money last year for being only 3, and will earn a bit more in 2010.
From Table 1-2.2009 Filing Requirements for Dependents on the IRS website