February 2000

What's New in Taxes

Your child may have to file a 1999 tax return

2/1/2000 -

If your child had wage income only during 1999, a tax return must be filed for 1999 if wages exceeded $4,300. If your child earned less than $4,300 but employers withheld taxes, a tax return must be filed if you want to receive the refund.

If your child had net self-employment earnings of $400 or more in 1999, a return is required and a self-employment tax of 15.3% is due. Income tax could be due if earnings exceeded $4,300.

If your child had investment income only during 1999 (such as dividends and interest), reporting is required if the total exceeded $700.

If your child had both earned and investment income, a return is required if the total income was more than the larger of (a) $700 or (b) $250 plus earned income, not to exceed the standard deduction of $4,300.