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Teen jobs and tax issues

tax issues

A teen’s tax return processing requirements rely upon his / her position as a reliant as well as on the total amount and kind of their income. Even if a teen isn’t required to document their own tax return, it may be good for do so. A discussion about taxes can be a great stepping stone to your teen’s broader financial education.

Teen Jobs and Tax Issues 

Next, you need to check out her income, both the amount and type.¬† Here’s where it gets more complicated because there will vary guidelines and income limitations for won income from employment, unearned income from dividends, interest or investment gains–or a mixture of both

For Earned Income Only

This is fairly straightforward. A dependent who does not have unearned income only must file a separate tax go back if gained income is above the standard deduction–$6,300 for 2015. So if your child earned significantly less than that, she wouldn’t have to document.

But it could be a good idea to do it anyhow. If her workplace withheld federal income tax, she might be eligible for a refund. You don’t want her to lose out on that. Plus, from the good learning experience.

For Unearned Income Only

Unearned income is some other story. If a child has unearned income above $1,050 for 2015, a tax return is required. But when interacting with unearned income only, you can pick to either record a separate come back for your son or daughter or include that income on your own go back. One caveat: If you include …

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