Do my kids need to file a tax return / pay taxes?
If your kids are working a summer job or going off to college and working part-time, you have some great advice you can give them.
Dependents who earn less than $14,600 from an employee job (W2 income) in 2024 don't have to file a tax return since the standard deduction would wipe out that taxable income.
Self-employment or independent contract work (1099 income) is different in that the filing threshold on this income is just $400 (due to needing to account for & pay social security and Medicare taxes).
The other caveat is when a dependent has unearned/investment income exceeding $1,300 in 2024. This could necessitate a filing requirement.
If your kids are exempt from filing per above, they would be best served claiming exempt from taxes on their W4 forms. This way their paychecks don't withhold taxes, which prevents the need for them to file taxes just to get their tax withholding back. Now their take-home pay will be increased and they won't have to pay to have their taxes prepared!
NOTE: if your child didn’t claim exempt and even if they don’t have a filing requirement in 2024, it may be worthwhile to file a tax return. This is the case if they had federal and/or state income tax withheld from their paycheck. Filing can help them get this money back in the form of a refund.
Updated 1/21/2025
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