Cedar Park, TX asked in Banking and Tax Law for Texas

Q: Do minors need to pay income tax?

I am a full-time student in high school. I've recently submitted some music to a music licensing company, and I am in the process of working out a contract with them. I am under the age of 16, and I believe I am claimed as a dependent on my parent's tax returns. According to the sample contract, I'm being 'hired' as an independent contractor. Do I need to pay income tax, and file tax returns, or will I be good simply setting the legal name on the contract to my parent's, and letting them claim my income as theirs' for taxation purposes?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Business Law Lawyer

A: Yes, if you have $400 or more of self-employment income you'll need to file a 1040.

How much income you have will determine whether your parents can still claim you as a dependant.

There is a difference between royalties from music and Self-employed Independent contractor income so make sure the contract and the tax docs match. Also, the filing requirement for royalties is higher than for SE income. But you also have the kiddie tax to deal with if it's royalties.

This is a great time to find an attorney to work with that knows the music industry and tax or can refer you out to a return preparer, its an added cost but they can avoid a lot of headaches in the future.

Good luck.

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