If your teen just received a W-2 from their first part-time job, they could be facing another first this year: filing taxes. Depending on your teen’s age, as a parent, you might take an active role in the process, guiding them through the steps of filing.
First, it’s important to determine if they need to file taxes or not. There are several scenarios in which they might have to file taxes.
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If your teen earned $14,600 or more at their part-time job last year, they need to file taxes in 2025 for tax year 2024. Many teens working only part time through the year — or full-time in the summer with reduced hours during the school year — will not meet that threshold if they earned even as much as $15 an hour.
If you live in a state with high minimum wage or your teen snagged a well-paying summer job, make sure to look at the gross income on their W-2 form to determine if they need to file taxes. If that number meets or exceeds $14,600, they will.
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If your teen worked in a restaurant, hotel or other hospitality venue, they may have received tips as part of their income. IRS law requires employees to file a record of tips with their employer, so the employer can pay the appropriate Social Security and Medicare taxes on that money.
Your teen should report any earnings of $400 or more on their tax returns, so they can pay their share of the taxes by April 15, according to the IRS website.
Even if your teen did not earn $14,600 throughout the year, they may want to file a tax return if their withholding taxes were overpaid. If they can get some money back, it’s worth it to file, especially if they use a free e-file service.
If your teen received interest, dividends or profit from stocks, savings accounts or other investments in addition to working a part-time job, they might have to file a tax return — even if what they earned does not meet the standard deduction amount of $14,600.
If you aren’t sure if your teen should file based on this information, consult with your family’s tax preparer or another tax professional.
Laura Beck contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Teens & Taxes: Does Your Teen Need To File Taxes for Their Part-time Job?
