It depends. Unlike other taxpayers, the IRS treats your dependent child differently depending on whether they earn money from work or through investments. Dependent children who have earned income of more than $12,950 of income in 2022 typically need to file a personal income tax return and might owe tax. Earned income applies to wages and salaries your child receives as a result of providing services to an employer or from self-employment, even if only through a part-time job.
However, even if your child earns less than $12,950 during 2022, it may be a good idea to file a tax return for them. They could be eligible for a tax refund if they had income tax withheld from their paycheck. Regardless of the amount of income your dependent child earns, their standard deduction is typically different than yours. It is limited by the larger of $1,150 or their earned income plus $400, with the maximum equal to the standard deduction for single taxpayers which is $12,950 for 2022.
See this TurboTax article for more information regarding filing requirements for dependent children.
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