My son is in high school and will start his first summer job in a few weeks. What does he need to do about taxes? First, he will need to fill out an IRS Form W-4 to specify how much money will be withheld from his paychecks for income taxes. If he will earn less than that, your son could check the box on Form W-4 that allows him to claim he is exempt from withholding. Thomas often recommends that teens claim zero or one withholding allowance instead, in case they end up having enough earned income to owe some tax.
But it counts toward his Social Security earnings record, which is used to determine his benefits in the future. Your son will also have to specify how much to withhold in state taxes. Kids with summer jobs should also consider contributing to a Roth IRA; you just need earned income from a job to be eligible to contribute to a Roth, regardless of your age. Skip to header Skip to main content Skip to footer.
Home taxes. If too much is withheld from your teenager's paychecks, they will receive it back at tax time in the form of a refund. This is one reason that a teenager might want to file their taxes, even if they do not earn more than the standard deduction and are not technically required to do so.
On the other hand, if too little money is withheld, a young person could find themselves in the position of owing money at tax time, a stress that not many teenagers are prepared to deal with. When your teenager fills out their very first W-4 form, the IRS provides instructions to help them through the process. During step one, they will need to include basic information like their name, address and Social Security number.
They will also be prompted to check a box indicating that they are single, and not married or head of the household. Provided that your teen does not hold more than one job, have their own dependents or expect to claim deductions, they will skip down to step five on the W-4 form. This is where they simply sign and date the form, before handing it back to their employer.
Sometimes teens accept jobs where they earn additional income through tips. For instance, they might wait tables, work as a caddie or work as a bellhop.
If you really want an inside look at how withholding is calculated, look at IRS publication A, it's a good education starting on page In other words, the tax tables work by "annualizing" your income each week and figuring out what tax you would owe if that was your pay for the whole year. If you want to claim 0 allowances, you would have more withheld but would then get it back as a refund if it was more than your eventual tax owed.
Even if you have too little taken out of your check, you won't owe an extra penalty since this is your first year of filing a tax return. You may want to check with your state and see if they have a separate state withholding form.
New York does, and a young single person who is also their parent's dependent needs to claim Single with one allowance on the Federal W-4 but single with zero allowances on the corresponding state form, because NY tax laws treat the exemptions a little differently. But I don't know about Oregon. View solution in original post.
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Community : Discussions : Taxes : Get your taxes done : I am 16 years old and just got my first job. On th
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