Dear Valued Clients and Visitors: As our nation responds to COVID-19, our firm is taking precautionary measures by closely following and reinforcing the guidelines from the CDC and local health authorities. Our physical office is open on an intermittent basis. However, please be assured that we are open for business and ready to serve your needs.

If you have a tax problem or inquiry please call and if we are not in leave a message. A return phone call will be made within a short period of time. Now is the time to address your tax matter. We remain committed to our clients and colleagues through these unusual times. Please stay safe and healthy.

Free Consultations Available

Finding Real Life Solutions To Your Tax Problem

Teen workers and potential tax breaks

On Behalf of | Jul 29, 2016 | Income Taxes |

For many teens, their summer vacation is nearing an end. With school starting in the next few weeks, many will be leaving their summer jobs. But for those teens who worked over the summer, it is important to know about the tax implications that may affect their income (or their parents’ tax liability) come tax time next year.

First and foremost, a teen worker who is a dependent on their parent’s tax return may not be required to file a tax return as long as he or she does not make more than the standard deduction amount for a single filer.  For the 2016 tax year, the standard deduction will be $6,300. As such, a teen can make this much money without filing a return.

For those teens providing traditional services, such as lawn mowing and babysitting, they will be considered by the IRS as household employees, even if they have formed their own businesses. As long as they are under the age of 18 during any part of the tax year for which they earned income, their earnings may not be subject Social Security or Medicare taxes.

Finally, teens who work within the family business, whether it is a restaurant, real estate company or even a plumbing service, may not have to worry about withholding for taxes. This may especially be the case if the parents’ business is unincorporated, (i.e. a sole proprietorship or partnership). Again, if the teen worker is under the age 18, there may be no taxes owed at all. 


Send Us A Quick Message