Getting a real job and a paycheck can be really exciting for teens. Not only will that spending money help them be able to have more fun, but it also can be instrumental in helping them become a more independent and responsible person. Most teens are surprised to learn that they won't bring home their hourly wage. Reviewing a pay stub can be a bit of a shock to a teen who discovers how much money is taken out for income taxes. When tax season rolls around, it can be confusing for teens and their parents about how to file an income tax return for a minor. No matter what type of income your teen has, or whether he has to file income taxes, it's important to explain how taxes work.
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Never miss a great news story! Get instant notifications from Economic Times Allow Not now. Income Tax dept to change the way it communicates, be friendlier. How to link Aadhaar card with income tax returns. Report on new income tax law submitted to finance ministry.
Teenagers coming of age often find a part-time job over the holidays or during the summer that enables them to exert some control over their financial life. But some special tax rules apply to young workers, based not only on age, but also on amount of money earned and even the type of job. First, the good news: The teen worker might not owe the IRS a dime. A dependent youth can earn up to that much and not have to file a tax return.