IRS Publication 929

Publication 929: Tax Rules For Children And Dependents is the go-to IRS guide for dependent tax filing requirements, dependent standard deduction limits, earned income vs unearned income thresholds, child tax return rules, and the special tax on unearned income of certain children (often called the kiddie tax), including when to use Form 8814 (Parents’ Election To Report Child’s Interest And Dividends) and when Form 8615 applies. If you’re a parent, guardian, college student, teen with a part-time job, or anyone claimed as a dependent, Publication 929 helps you answer the real-world questions: “Do I have to file?”, “Will I get a refund if withholding happened?”, “How do I calculate the dependent standard deduction?”, and “What happens if my kid has interest/dividends or other unearned income?” It also covers nuts-and-bolts details like who is responsible for signing and filing a child’s return, how to handle federal income tax withholding basics (including when someone can claim exemption from withholding on Form W-4), and why certain dependents still must file even with lower income if they owe specific taxes. In other words, Publication 929 is less about “tax theory” and more about turning common family money scenarios—summer jobs, scholarships that become taxable, savings account interest, dividends, and investment income—into correct decisions about filing, reporting, and staying compliant with IRS rules.

What Publication 929 Covers

Publication 929 is split into two big areas: rules for people who can be claimed as dependents, and special rules for the unearned income of certain children. Part 1 focuses on filing requirements, responsibility for a child’s return, standard deduction rules for dependents, and wage withholding basics. Part 2 focuses on how unearned income is handled, including the parent election via Form 8814 and the tax calculation rules via Form 8615.

Who Should Use Publication 929

Use Publication 929 if someone can claim you as a dependent and you earned money (wages) or received unearned income (like interest and dividends). It’s also helpful for parents who manage a child’s investment income and want to know whether the child files their own return or the parent reports certain income instead. If you’re dealing with a dependent who is a full-time student, has scholarship income that must be included in income, or has a mix of earned and unearned income, this publication is designed for exactly that.

Filing Requirements For Dependents

Whether a dependent must file generally depends on the amount of earned and unearned income and whether the dependent is married, age 65 or older, or blind. Publication 929 breaks filing requirement rules into three scenarios: earned income only, unearned income only, or both earned and unearned income, and it provides worksheets and a table to help determine when filing is required. It also explains “Other Filing Requirements,” meaning a dependent may have to file even below typical income thresholds if they owe certain taxes (for example, specific Social Security/Medicare situations, AMT, certain recapture taxes, HSA additional tax, or self-employment net earnings at or above a stated amount).

When Filing Is Smart Even If Not Required

Publication 929 notes that even if a dependent doesn’t meet the filing requirement tests, filing may still be a good idea if income tax was withheld or if the dependent qualifies for the earned income credit, because filing is how a refund is claimed. This is one of the most overlooked “easy wins” for students and teens with part-time jobs.

Who Files And Signs A Child’s Return

Publication 929 explains that a child is generally responsible for filing their own return and paying tax, penalties, or interest tied to that return. If a child can’t file for a reason such as age, a parent, guardian, or legally responsible person must file on the child’s behalf and sign in the specific manner described (signing the child’s name followed by wording indicating the signature is by a parent/guardian for a minor child). It also clarifies what a parent/guardian can do with the IRS depending on whether they signed the return, were named as a third-party designee, or were formally designated as a representative.

The Dependent Standard Deduction (The Rule People Google At Midnight)

For an individual who can be claimed as a dependent, Publication 929 states the standard deduction is generally limited to the larger of $1,100 or the individual’s earned income plus $350, but it can’t exceed the regular standard deduction amount for the dependent’s filing status. The publication includes a standard deduction worksheet and examples, and it also explains situations where the standard deduction is zero (such as a married dependent filing separately when the spouse itemizes). It also defines earned income for these purposes and explicitly includes wages, salaries, tips, professional fees, and other compensation for services, plus any scholarship amount that must be included in income.

Withholding From Wages And “Exempt” On Form W-4

Publication 929 explains that employers generally withhold federal income tax, Social Security tax, and Medicare tax from wages, and that an exemption from withholding affects federal income tax withholding but not Social Security and Medicare taxes. It lays out conditions for claiming exemption from withholding and notes additional limitations for dependents, including a rule that a dependent ordinarily can’t claim exemption from withholding if gross income will exceed the minimum standard deduction amount and unearned income will exceed a specified amount (with listed exceptions). It also notes that an exemption from withholding is only good for one year and must be renewed by filing a new Form W-4 by February 15 to continue the exemption.

Unearned Income, Form 8814, And The Kiddie Tax Basics

Publication 929 describes two key rules that may affect a child’s unearned income: a possible parent election to include certain interest and dividend income on the parent’s return when conditions are met, and special tax rates that can apply when a child’s interest, dividends, and other unearned income exceed a stated threshold. The parent-election path is handled through Form 8814, and Pub 929 lists the conditions that must be met, including age/student status, the type of income (interest and dividends, including capital gain distributions), gross income under a stated limit, and restrictions involving estimated tax payments and backup withholding. When the parent election doesn’t apply (or isn’t beneficial), Pub 929 points to the “Tax for Certain Children Who Have Unearned Income” rules using Form 8615.

A Quick Real-World Example

If a dependent has a part-time job (earned income) plus a small amount of interest (unearned income), Publication 929’s “both earned and unearned income” worksheet is designed to test whether they must file based on their gross income compared to the worksheet result. If a child’s income is only interest and dividends, Publication 929’s rules explain when the child must file and when a parent may be able to report that income via Form 8814 instead.

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