• IRS Publication 929 describes who must file a tax return.A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com
  
  The requirement for children to file federal tax returns is dependent upon how much unearned or earned income they made during the year. The threshold for filing is significantly different for children with unearned income such as investment income. Filing requirements from state to state significantly differ. Check with your state's Department of Revenue for specific details.
  
  

Earned Income Only

• W-2 income is earned income.100 image by kaleff from Fotolia.com
  
  Earned income is compensation from working as an employee or operating a business. Children must file a federal income tax return if all their income is earned income and exceeds $5,700. If a child is blind, she need not file unless her earned income exceeds $7,100. For example, if your child works part-time at a department store and makes $6,000, he is required to file a federal tax return because his income exceeds $5,700, but if the child was blind, he would not have to file because his income was less than $7,100.
  
  

Unearned Income Only

• The IRS also collects taxes from children.snatch image by Valentin Mosichev from Fotolia.com
  
  If a child received more than $950 of unearned income, or if blind, $2,300, she must file a federal tax return. Unearned income includes taxable interest, dividends, capital gains distributions, etc. For example, if a child who can be claimed as an dependent on your tax returns earns $1,000 in taxable interest, but has no earned income, he must file a federal return. However, if he was blind, he would not have to file because the threshold is $2,300.00 for blind children.
  
  

Earned and Unearned Income

• Earned and unearned income must be computed separately.cash out image by elke peterson from Fotolia.com
  
  When a child receives a mix of earned and unearned income, determining whether she must file is a little different. A child must file a federal tax return when her gross income is more than the larger of $950 or her earned income up to $5,400.00 plus $300. If blind, it is the larger of $2,350.00 or her earned income (up to $5,400.00) plus $1,700. For example, if your child made $5,400 in earned income and $301 of unearned income, she is required to file a federal tax return.