Entering the workforce and earning your first paycheck is an exciting milestone. But when do teens actually have to file taxes? Generally, a teen must file a tax return if their income exceeds the standard deduction, if taxes withheld from your paycheck, or if they earned self-employment income over a certain amount. Here’s what you need to know to determine whether a teen needs to file.
When does a minor need to file a tax return?
Whether or not you are required to file a federal income tax return depends on how much you’ve earned that year, regardless of your age. In general, the IRS expects you to file a tax return if you earn more than the standard deduction amount. For 2025 tax returns (filed in 2026), the standard deduction is $15,750 for single filers under age 65.
But even if you earn less than the standard deduction amount, you might still decide to file a tax return. That’s because filing a tax return is the only way to claim a tax refund if you’re owed one.
If you file, your parent(s) or guardian(s) should not report your earned income on their taxes. However, the IRS requires you to indicate that someone else can claim you as a dependent on your return.
If you’re still not sure where you need to file an income tax return, the IRS has a “Do I need to file a tax return?” tool that you can use for free anytime.
Why teens may want to file even if they don’t have to
Even if you’re not legally required to file a tax return, doing so can be worthwhile. Many part-time or seasonal jobs withhold federal income taxes, and filing a return is the only way to get that money back as a refund.
Filing also helps you start building a financial record. This paper trail may be useful when applying for student loans, credit cards, or even renting an apartment.
At what age do teens start paying taxes?
There’s no minimum age requirement for paying taxes. So, it doesn’t really matter how old you are. If you earn income from a job, you mat start paying taxes as soon as you begin working.
When you earn an hourly wage, your employer typicallywithhold tax from your paycheck automatically. You may have noticed deductions on your paystub for Social Security and Medicare (FICA), federal income tax, and possibly state income tax, too. If you’re paying these taxes, then you may also need to file a tax return. In general, every person who earns money working in the U.S. is supposed to pay federal income tax and require to contribute to Social Security and Medicare. Most states also charge a state income tax, although those rules will vary by location.
How taxes work when a teen has a job
Since the government expects you to pay taxes, they make it easy for you — they take it directly out of your wages. This is called withholding. As a result, the amount of money you take home will not be equal to the amount you earned.
Your gross income is the amount of salary or wages your employer paid you before any tax was taken. But your net income is the money you take home after you have paid income tax, Social Security, and FICA.
What about taxes on investment income?
Teens who own money from investments might have to pay capital gains tax, regardless of your age. The tax rate can depend on how long they’ve held the investment and how much money they make in a year.
Do teens have to pay taxes for a side job like babysitting, lawn mowing, etc.?
Possibly. If your teen earns more than $400 by mowing lawns, babysitting, or other activities, the IRS considers them self-employed. They’ll need to file a tax return and report earned income from these types of jobs if it’s more than $400 per year.
The good news is they can also take tax deductions for certain expenses that are related to the job. For example, the IRS allows self-employed taxpayers to deduct mileage if they drive themselves to and from work on a regular basis. Also, if your teen used their own lawnmower to mow grass, they can write off the cost of the equipment.
Do I have to file taxes if my parents claim me as a dependent?
Not typically. If you’re making your own money, you’re responsible for filing your own tax return. However, there are some exceptions, like when a child has income from interest, dividends, or capital gains. In those cases, parents might be able to include your income on their return, but that’s more the exception than the rule.
How to determine your income tax bracket and filing status as a teen
Unless you are married, the filing status on your first tax return should be single.
The IRS cares about your filing status because it helps them understand which income tax bracket to put you in. Single people, married couples, people with dependents, and widow(er)s are put in different tax brackets, based on their filing status.
The amount of tax you pay is a percentage of your total taxable income for the year, this is your tax rate. The government decides how much tax you owe by dividing your taxable income into chunks — also known as tax brackets. Each bracket gets taxed at a different rate.
The U.S. has a “progressive” tax system, meaning people with higher taxable incomes pay higher federal income tax rates. If a person’s highest taxable rate is 35%, then we say they are in the 35% tax bracket. If the highest tax rate you will pay is 10%, you are in the 10% tax bracket.
How do teens file taxes?
Filing your taxes online is pretty straightforward. TaxSlayer offers step-by-step guidelines, so it’s easy to enter your income and other important information in the right place. When you’re finished, all the calculations are done for you, so you can rest assured your return is accurate.
Here’s how to get started:
- Determine if you need to file taxes – First, figure out if you’re required to file a tax return. Not everyone needs to file, especially if your income is below a certain threshold, which can vary depending on factors like age and filing status. However, filing can still be beneficial as you might be eligible for a refund.
- Gather your tax documents – Collect all your documents before you start the filing process. If you have a job, your employer should send you a W-2 form that reports your wages and the taxes withheld from your paycheck. Other documents might include 1099 forms if you’ve done freelance work, earned interest from a bank account, or received different types of income. Plus, you’ll need your Social Security number or Individual Taxpayer Identification Number (ITIN). Make sure you have that handy.
- Choose the best software to meet your needs – Selecting the right tax software can make all the difference. TaxSlayer makes it easy to file your tax return. Plus, if your tax situation is simple and your only tax document is a W-2 form, you could qualify to use TaxSlayer Simply Free to file your taxes.
- File your return – When you file with TaxSlayer, you’ll be asked easy questions about your income, and you’ll get all the answers off your W-2. Your info will be automatically calculated and entered on your IRS Form 1040. This is the official name of your federal tax return. We’ll guide you through the process so you don’t miss any steps or potential tax breaks.
The deadline to file your taxes is usually April 15th unless that date falls on a weekend or holiday. Starting early gives you plenty of time to gather documents and address any questions you might have.
What you need to file your first tax return
Getting into your first tax return can feel like a massive leap into adulting, especially if you’re just starting to get a handle on your finances. But we’ve got you covered!
Once you know exactly what info and documents to pull together, the whole thing gets way easier. So, here’s a list of everything you need to tackle your first tax return:
- Your W-2 – Your employer should send your W-2 in the mail or electronically in January.
- Your legal name and birth date – Accuracy in personal information is a must. The name and birth date on your tax return must match the details on your Social Security card to avoid any processing delays with the IRS.
- Your tax ID number –This will most likely be your Social Security number (SSN). If you don’t know your SSN, you can find it on your Social Security card. If you don’t have a SSN, you will need an Individual Taxpayer Identification Number (ITIN). The IRS uses this for security purposes to make sure you are who you say you are.
- A TaxSlayer account – To file your taxes, you’ll need to create a TaxSlayer account. This requires a unique username and password. Registration is free, and even minors can set up their account. Starting early will give you ample time to familiarize yourself with the platform.
