If your child picks up a summer job, they may or may not be required to file a federal tax return and/or pay federal taxes. It all depends on the type of job and how much they earn. The charts below provide some simple guidelines.
Even if your child is not required to file a federal tax return, it’s wise to consult with your financial planner or tax advisor, as he or she may be due a tax refund. And be sure to include your child in that consultation and any filling that may result. It’s never too early to start young wage earners on the road to financial literarcy—-teaching them the significance of taxes and and the ramifications of not managing them correctly.
This blog was excerpted from a Charles Schwab Personal Finance and Planning online post.