Hey, did your teenager have a side hustle this summer? Did they wash cars, babysit, or do something else to make money? Do you know that if your teenager made at least $400, they must file a tax return?
The IRS requires everyone including minors to file a tax return if they had net earnings from self-employment of at least $400.
That’s right, your baby is all grown up. Well at least in the eyes of the IRS.
Make sure you let your teenager know.
Here are a few key things to remember when speaking to your child:
If they owe taxes, they should file their own tax return, even if you claim them as a dependent.
They can prepare and sign their own tax return. There is no minimum age to sign a tax return.
Parents can't claim a dependent's earned income on their own tax return.
In addition to income tax, people who are self-employed are responsible for self-employment tax as well.
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