Investment Income of Your Minor Child

A child that you can claim as a dependent in 2007 is required to file a tax return if he or she received any of the following:

• more than $850 ($900 in 2008) of unearned income (interest, dividends, investment income, etc.)
• more than $5,350 ($5,450 in 2008) of earned income, or
• gross income (the sum of earned plus unearned income) that was the greater of:
  • $850 ($900 in 2008)
  • the sum of earned income (up to $5,050) plus $300

If a minor child is required to file a return, the parents have two options.

• Reporting on the child's own return
• Reporting a child's income on your return