Parents often ask me when their sons and daughters have to start filing tax returns. Well, it has nothing to do with the child's age, but rather how much the child made in 2007 and from where it came.

For children who have bank or mutual fund accounts in their own names -- and that includes custodial accounts -- a return is due if investment income during the year was more than $850.

If your child had a job last year -- babysitting or working retail -- he or she must file if wage income was more than $5,350.

And a youngster might have to file even if wages were less, if he or she also had more than $300 of investment income.

Now, your child might want to file a return even if it's not demanded by the law: It's the only way to retrieve taxes withheld from paychecks. Although kids often can get back most or all of their income taxes, many teens are surprised -- and disappointed -- to learn that that rule doesn't apply to Social Security taxes withheld by the boss. There's no way to get that money back -- until they retire and file for benefits.

And children have something special to be disappointed about this year: Congress specifically banned dependents from receiving tax rebates this year. No matter how much a child you claim as a dependent might owe in 2007 taxes, he or she won’t get a rebate check.

MORE: Kiplinger.com | Your Money | Taxes | Column

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