The child's W-2 has to be entered on the child's own tax return, if he or she files a tax return. It cannot be entered on your tax return.
A 16-year old child who can be claimed as a dependent (by you or anyone else) must file a tax return if any of the following apply.
1. The child's unearned income was more than $1,250.
2. The child's earned income was more than $13,850.
3. The child's gross income was more than the larger of:
a. $1,250, or
b. The child's earned income (up to $13,450) plus $400.
Basically earned income is income from working. Unearned income is typically investment income such as interest or dividends, or anything else other than income from working.
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