How much interest can a child earn before taxes must be paid on it.
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Child's Interest
See page 12-10 TTB. For dependents with no earned income, the first $900 is not taxed. The second $900 is taxed at 10% (0% for capital gainsand qualified dividends), and amounts over $1800 are taxed at the parent's rate for ordinary income and/or capital gains. At the bottom of page 12-10 it shows the tax treatment depending on whether it is filed on the child's return or the parent's return.
Good luck!
Mo
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