Tax Professionals

Does My Teenager Have to File a Tax Return?

Does your teenager need a part-time job? Or is she earning dividends and interest for the investments you prepared for her as a child? Learn when teenagers must file a tax return and how to file a tax return for a teenager.

How to File a Tax Return for a Teenager

There are two methods in which your teenager can file a tax return depending on how she earned money during the year.

1. Attach to the parent’s statement if the teen does not have a job: If your teen is under 19 and the teen’s income is less than $ 9,500 and just from dividends and interest, it may be involved to the parent’s return using Form 8814. Whether there is some income from a part-time job, you can’t attach your teenager’s tax return to your tax return. Though this method is a simple method to file the tax return, however, it can generate higher taxes on capital gains or qualified dividends.

2. Complete the individual tax return for teenagers. If the necessities to attach it to the parent’s statement are not met, or if you need to guarantee lower taxes, the teen must submit his / her own statement. Your teen can submit a simple statement for free at Complete Tax. See more.

Kiddie Tax for Teenagers

It is very significant to know that if dividends plus interest plus other investment income total more than $ 1,900, share of your teen’s income will be taxed at the parent’s tax rate in place of the teen tax rate. This is known as the child tax, which exists to ensure that the government does not lose tax revenue if parents change income to their children.

Teach Teenagers about Taxes

If you work on filing taxes for your teenager, it is a good opportunity to teach her about taxes. When she has a job, explain that her employer will hold back taxes from her paycheck and provide her a folder to keep her pay stubs for a tax period. Also, help her with the tax return, collecting her paychecks and adding up the amount of withholding she had. Show where you enter the numbers on the tax forms to file taxes for your teen.

Other Filing Requirements for Teenagers

In addition to the filing requirements, there are many other circumstances in which adolescents have to file a tax return. An example is the Social Security and Medicare tax not collected by an employer. For all requirements, see Publication 929, Tax Rules for Children and Dependents.

Optional Teen Tax Filing

Even if your teenager is not needed to file a tax return, she can select to file one. She may desire to do this if she was withdrawn from a part-time job and needs to get a refund.

When you determine that your teenagers should file a tax return, you can use complete Tax to file a free tax return for teens. Whether or not your teenager files a return, I would certainly talk to her about withholding and taxes, and have her work with you as you make either hers or your personal tax return. Check out this: https://www.taxreturn247.com.au/fast-refund-option