Tax Basics for Teens Do Teens Have to File Taxes

Filing and paying as much as possible is key because the late-filing penalty and late-payment penalty add up quickly. Get advice on achieving your financial goals and stay up to date on the day’s top financial stories. Experian websites have been designed to support modern, up-to-date internet browsers. If you are currently using a non-supported browser your experience may not be optimal, you may experience rendering issues, and you may be exposed to potential security risks. It is recommended that you upgrade to the most recent browser version.

If your child’s income is above this year’s level, they need to file; below that point, they aren’t required to file a tax return. If you qualify for both, it’s generally more valuable to claim the AOTC — this tax credit covers more qualified expenses and is partially refundable, unlike the LLC. Both tax credits are available to whoever pays for the schooling, student or parent, can you file taxes at 18 and students can’t claim these credits if they are dependents. Filing taxes as a teen doesn’t have to be confusing if you understand when you’re required to file. Talking to your parents about taxes and when you’ll have to start paying can make the process easier to navigate. You can also discuss the best ways to use your tax refund if you expect to get money back.

TURBOTAX DESKTOP GUARANTEES

They could be eligible for a tax refund if they had income tax withheld form their paycheck. Regardless of the amount of income your dependent child earns, their standard deduction is typically different than yours. It is limited by the larger of $1,250 in 2023 ($1,300 in 2024) or their earned income plus $400, with the maximum equal to the standard deduction for single taxpayers which is $13,850 for 2023 and $14,600 for 2024. The IRS recommends that taxpayers e-file their taxes to reduce the chance of processing delays and receive any tax refunds faster, pointing out that electronically filing your return is also the most secure method. If your teenager received earned income as a W-2 employee or 1099 contractor in 2022, they may have to file tax returns. Your teen can also e-file their taxes for free using third-party tax software.

• You may be eligible for the IRS Free File program if you don’t qualify for Direct File.
• If they are not old enough to understand how to prepare a tax return, then it becomes the parent’s responsibility to file it for them or to include the income on the parent’s tax return.
• To claim a dependent for tax credits or deductions, the dependent must meet specific requirements.
• Nearly 1 in 5 eligible taxpayers miss the earned income tax credit, or EITC, a tax break for low- to moderate-income workers that averaged $2,541 last season, according to IRS Commissioner Danny Werfel.
• The pilot program was initially available to a small number of selected taxpayers, mainly state government workers in 12 states.
• But the sooner they do, the longer their savings will have to compound and grow.

There’s no penalty for filing after the April 18 deadline if a refund is due. Taxpayers are encouraged to use electronic filing options including IRS Free File which is available on IRS.gov through Oct.16 to prepare and file 2022 tax returns electronically. Find out below whether you should wait to file, if you’re eligible for the child tax credit in 2024 and how much money you could get. For more tax tips, here are this year’s filing deadlines and our picks for the best tax software. Here’s when you can expect to receive your child tax credit refund this year. A student who files a tax return, however, might have an income that’s low enough to take these credits—if her parents don’t claim her as a dependent.

How to File Your Taxes as a Teen

It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. Additionally, if you make $64,000 or less, have a disability, or speak limited English, you may be eligible for Volunteer Income Tax Assistance offered in community centers, libraries, malls, and similar locations. Certain U.S. military Veterans can file online for free with MilTax, which is open until April 18, 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. This credit card is not just good – it’s so exceptional that our experts use it personally.

Subscribe to Kiplinger’s Personal Finance

The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. But if the date falls on a Saturday, Sunday or legal holiday, the deadline shifts to the following business day. The pilot program was initially available to a small number of selected taxpayers, mainly state government workers in 12 states. If the test initiative proves successful, the agency could, in future tax seasons, expand participation nationwide. The IRS offers tips to help taxpayers choose a tax professional to help with tax return preparation.

A tax return also creates a paper trail for a Roth IRA, though technically you can contribute to a Roth without filing. If you’re at least 18 years old, you can start a Roth in your own name; parents or guardians can set up beneficiary Roth accounts for younger teens. You can use Form 8615 to calculate your child’s tax liability on unearned income of more than $2,500. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.