Teens & Taxes: What You Need To Know
It’s a common (and a good!) question, and it’s best to know the answer before tax day–April 15–rolls around.
The short answer It’s not a question of how old you are, it’s a question of how much you make.
The long answer If you are a minor (under 18 years old) and your earned income was over $6,350 in 2017, you will need to file a tax return.
In the world of taxes, minors are (under 18 years old), considered “dependents” and are in a lower tax bracket than adults. The reason is quite simple: minors are likely students and are therefore not expected to make as much money as their parents or guardians.
Am I a “dependent?” If you are one of the following, you are considered a “dependent” by the IRS (Internal Revenue Service): • Under 19 years old • A full-time student under 24 years old • Your parent or guardian provides financial support that is equal to or greater than half of your annual income.
“Unofficial” jobs count! Babysitting, lawn mowing, dog walking, snow shoveling...if you’ve filled one of these roles or any similar roles, you’re considered “self-employed” by the IRS. And if you made more than $6,350 as a self-employed worker in 2017, you’ll need to file.
I need to file. Now what? Time to fill out forms. Yay!
First of all, memorize your social security number...all of these forms will require it.
If you are self-employed, you'll fill out Form 1040EZ and Schedule SE (self-employment). If you’re employed by a business, your employer will provide you with a W-2 form. • More info on Form 1040EZ here • More info on Schedule SE self-employment here
If you’re not likely to make more than $6,350 working this summer (or even this year in total), consider filling out a W-4 form anyway (more info on the W-4 form here). W-4s determine how much of your income employers will withhold from your paycheck. If you don’t fill it out, they are required to withhold at the highest rate, so completing the form will will ensure you keep as much of your earnings as legally possible. (More info on filling out a W-4 as a minor here.)
Resources Visit these pages for more helpful information. • How to File as a Dependent • Tax Rules for Children and Dependents • Minimum Income Requirements for Filing a Tax Return • How Many Hours is “Full-Time” Employment? • How to File Electronically • Helpful Government Resources
Too long, didn’t read Long story short: stay on top of this stuff! Get all your ducks in a row before April 15. Tally up your earned income for 2017 and determine if you need to file, and if you do, refer to the information and resources above to ensure you do so correctly.
If you need additional help, consider visiting your school’s guidance department–they can give you more detailed guidance and help answer any specific questions you may have.
I'm understanding that you filed taxes on all them non taxable jobs ( cash jobs ) , babysitting ,lawn mowing , shoveling ,ect...... Big mistake don't claim them , also keep them to your self ,good luck in the future ......
TEENS CHECK THIS OUT!! This is so helpful for you as taxes are often even difficult for most adults (I know, I struggle with them sometimes). Thanks for this wonderful post Maddie!!
Make sure that you and your teen are clear as to who will claim earned income credit. Even if your child files taxes, if he/she meets the support and residency guidelines outlined on irs.gov, you as a parent, can claim the child on your taxes. There is an EITC calculator on irs.gov. The 2 of you might want to sit down together and see whether it is more financially beneficial to claim himself or for parents to claim. Irs.gov is a treasure-trove of tools and information for taxpayers.,