So, your teenager is excited about working this summer for a company and earning their own money. Or, maybe you’re excited because they will soon start to pay for their own expenses like insurance, gas and general spending money. All is going great until the end of the year and then you start to wonder what the requirements are for filing taxes on all that money your kids have earned.
Requirements For Teenage Tax Returns
If your teenagers are working for an employer and can be claimed as a dependent by another taxpayer, they can make up to the standard deduction for that tax year.
For example, the standard deduction for a single taxpayer for 2017 is $6,350. However, if the company your child is working for is withholding taxes, it could be a good idea to run the numbers to see if a refund is warranted.
Now that your teenagers are members of the working force, this is a great time to talk to them about finances such as:
- Saving money
- Possibility of investing in a Roth IRA
It’s never too early to think about estate planning to ensure that your assets are distributed in the manner that you desire. Good estate planning provides peace of mind knowing as your teenagers grow into successful adults they can be assured that you have made arrangements for your and their future.
Let Wooden Law Firm Help
Contact one of our attorneys today and we can handle your estate planning needs and discuss any tax matters that you have.
*This blog is related to earned income only. For information regarding unearned income, please visit the IRS website. In addition, rules and regulations as set by the IRS can change regularly, so it’s best to review the IRS website or check with an attorney or CPA with our firm for recent updates.