If a child earns more than $12,400, what is required?

When a child earns more than $12,400 in a year, they must file a tax return. The amount of income that triggers a filing requirement is set based on the IRS guidelines for the tax year, and $12,400 represents the standard deduction available for single filers for that tax year. Since the child's income exceeds this amount, it is necessary for them to file a tax return to report that income and ensure compliance with tax laws.

Filing a tax return allows the IRS to assess any tax liability, and it also provides an opportunity to claim any potential tax benefits. This requirement applies regardless of whether the child is claimed as a dependent on someone else's tax return. It's important to note that even if a child has lower earnings or qualifies under other criteria, exceeding the specified income threshold means they must fulfill the filing obligation to accurately report their financial situation.