中文 （English version follows below)

给上大学的孩子开投资账户和报税

1. 开Fidelity Roth IRA。我在孩子16岁时第一次暑假打工时，就已经在Fidelity我的账号下开了一个Minor Roth IRA给他了。Roth的好处是里面的投资的钱，本金和增值以后不要交税，每年上限是$6500。为了鼓励孩子赚钱，上大学前，我是让他给我他挣的50%，我match另外的50%，这样他还是有100%的钱可以花的。上大学后，他挣的都自己花，我100%match到他的Roth里去（Roth存入的数额只能是他当年自己赚的earned income，亲人的礼物金和红包啥的都不行)。

18岁后，我给Fidelity客服打电话，把他的minor account转为他自己的独立账户了，但在他的允许下，他这个账号还在我的Fidelity账户里，这样方便我自由地帮他买卖。我给他买了Index fund 和TSLA， 钱少，但人家是从16岁就开始投资了，我30多岁毕业工作后才开始呀，他以后会感谢我这个妈的。

2. 开个人信用卡。18岁后，强烈建议不要再加在父母的副卡了，因为小孩成年了，要开始独立地建立自己信用的记录了。绝对建议申请Discover 给大学生的那张卡，0年费， 不看收入门槛，通过率100%，以后GPA3.0以上给Discover上个成绩单，他们还会给20-30刀鼓励（其他Discover卡没有）。我孩子18岁上大学前的那个夏天就申请了，第二年到外面租房就有好的信用记录了，很多没有信用记录的大学生还得要父母co-sign，房东还要查父母的财务状况，我不喜欢这样。然后我们教育孩子为啥要设auto Pay并且连上他的银行账号，解释为啥只能在自己银行存款的范围内花钱，这也是个很好的教育过程。

可以用下面我孩子的Discover referral，他们每个小孩各得$100，这张18岁后的第一张卡要不直接通过, 要不会收到他们的email要求给他们确认没有fraud就通过了, 所以基本都是100%通过的。

https://refer.discover.com/linhong26!c4c937c823!a

第二个学期，我又让我孩子开了一张Fidelity有2%cash back的卡。因为有了Fidelity的account了，所以即使他的收入低也很容易通过了，这2%的钱会自动投入回到Fidelity去。有了2张信用卡后，他的信用分越来越好（其实，老是只用一张卡是不方便升信用分的）。第二年后如果有点收入了，也可以申请Citi double cash or PayPal 2% 或其他卡。

3。建立网上购物Portal： 大学生在网上买东西真是太多了，注册个Rakuten，是很多网站最大的cash back，鼓励小孩养成习惯用，比如Nike和Adidas和lulu经常有 8% - 25% off，加上sale， 每年他们就会有不少cash back，用我的链接各得 $50: www.rakuten.com/r/LINHON8?eeid=28187

4.报税。 大学生不管收入多少几百到几万，是要报税的（钱少就不用交税但还是要报税，报税和交税是不同的概念），父母同时还时可以claim 做他们做dependent拿child credit的。 我的CPA强烈建议大学生自己独立报税，一是如果有钱可以退，钱会直接到孩子的银行账号上；二是孩子的一点钱会被扣到了他自己的Social Security里去，就是把他真正当个大人一样来建立他的个人系统了。

符合IRS条件的(见下），父母还可以claim $2,500 educational tax credit，我提供给CPA学费单子和书杂费.

https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

English Version

Investing and Tax Filing for College Kids

1. Open a Fidelity Roth IRA

When my child had his first summer job at age 16, I opened a Minor Roth IRA for him under my Fidelity account. The beauty of a Roth IRA is that both the principal and the earnings grow tax-free. The annual contribution limit is currently $7,000 (up from $6,500).

• The "Parent Match" Strategy: To encourage him to work, before college, I had him contribute 50% of his earnings to the Roth while I matched the other 50%. This allowed him to keep 100% of his hard-earned cash to spend. Now that he is in college, he spends what he earns, and I match 100% of his earned income into his Roth.

• Important Note: You can only contribute up to the amount of the child’s earned income for that year. Gifts or "Red Envelope" money do not count.

• Transitioning at 18: Once he turned 18, I called Fidelity to convert the minor account into an independent account. With his permission, the account remains visible under my login, making it easy for me to help him manage investments like Index Funds and TSLA. He’s been investing since 16—whereas I didn't start until my 30s—he will definitely thank me later!

2. Establish Independent Credit

After age 18, I strongly recommend that children stop relying solely on being an "authorized user" on their parents' cards. They need to build their own credit history.

• The First Card: I highly suggest the Discover it® Student Cash Back card. It has $0 annual fee and a high approval rate for students. If they maintain a GPA of 3.0 or higher, Discover often offers a "Good Grade Reward" (around $20-$30), which other cards don't provide.

• Why it Matters: My son applied the summer before freshman year. By his second year, he had a solid credit score, allowing him to rent an apartment without me having to co-sign or provide my personal financial records.

• Financial Education: This is a great teaching moment. We taught him how to set up Auto Pay linked to his bank account and explained that he should only spend what he actually has in the bank.

Discover Referral Link: Using a referral like the one below can often get both the student and the referrer a $100 statement credit:

https://refer.discover.com/linhong26!c4c937c823!a

• The Second Card: In his second semester, I had him open a Fidelity Rewards Visa, which offers 2% cash back. Since he already had a Fidelity account, it was easier to get approved despite a lower income. The cash back is automatically deposited back into his investment account. Having two cards significantly helps boost his credit score more than just using one.

3. Set Up a Shopping Portal (Rakuten)

College students shop online constantly. I encouraged mine to register for Rakuten to get cash back on almost everything. Stores like Nike, Adidas, and Lululemon often offer between 8% and 25% cash back during sales.

Referral Link: New users can often get a $30-$50 bonus using a link like this: www.rakuten.com/r/LINHON8?eeid=28187

4. Tax Filing

Regardless of whether they earn a few hundred or several thousand dollars, college students should file a tax return. (Note: Filing a return is different from owing taxes; they may not owe anything if they earn below the standard deduction).

• Filing Status: My CPA strongly advises that students file their own independent returns. Even so, parents can usually still claim them as a dependent for the Child Tax Credit (if they meet the age/support requirements).
  
  

• Benefits: Filing helps the child get any withheld tax refunds back into their own account and starts their record in the Social Security system. It treats them like the adults they are becoming.
  
  

• Education Credits: If you meet IRS requirements, parents can claim the American Opportunity Tax Credit (AOTC) of up to $2,500. Make sure to provide your CPA with the 1098-T form from the school and receipts for books and required equipment. More info on Education Credits: IRS Education Credits Q&A.