Most teenagers and college students spend their summers working. When filing season rolls around, parents and their kids should understand how summer jobs may affect their taxes.
Most teenage workers who depend on another individual may not have to worry about income tax preparation unless they exceeded the standard deduction amount of a single filer, according to Fox Business. For 2010, the deduction amount is $5,700. In order to claim exemption from filing, summer workers should pay attention to Line 7 when completing their W-4 at their workplace.
Special rules may also apply to parents who employ their children through a family business. Those who pay their children less than $5,700 may not have to withhold FICA taxes if their child is under the age of 18, Fox Business reports.
Because the rules and regulations pertaining to teenage and summer workers may be confusing or situational, it may be a good idea for parents to consult a tax service or preparer to ensure that information is accurate and complies with Internal Revenue code.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.