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[Music] hi everyone im michael ruger im the managing partner at green bush financial group and with me this morning is my partner in the firm dave wajesky dave is also the managing partner of the wajeski and company accounting firm and the topic were going to talk about today is when does your child have to file a tax return or when is it optional for them to do so when the advantages and disadvantages around that so lets just start off with the easy example that you know my daughter starts working shes 16 she made five thousand dollars for the year does she have to file a return should she file a return like how does that work well no the irs has let anybody escape tax so uh from a childs standpoint theres you have to know the difference between earned income and unearned income so earned income is anything to earn from work or thats not passive like interest dividends and capital gains because the irs has different limits for both so if youre a child you can earn up to twelv
