Lana Oconnell
Whether students under the age of 18 have to pay taxes depends on their income and dependency status. In the US, tax laws and agencies like the IRS don't set age guidelines. If a minor earns an income and meets certain criteria, they are required to file a federal and state tax return for the tax years they earned income. Minors who qualify as dependents on their parent or relative's tax return do not have to file a separate tax return. However, if a minor has earned an income of over $400 as an independent contractor, they are required to pay self-employment taxes.
| Characteristics | Values |
|---|---|
| Do students under 18 have to pay taxes? | It depends on the student's income and dependency status. |
| Tax requirements determined by age? | No, tax requirements are not determined by age. |
| Minors who qualify as dependents | Do not have to file a separate tax return. |
| Minors with income exceeding standard deduction | Must file their own tax return. |
| Standard deduction for 2024 | $14,600 |
| Standard deduction for 2025 | $15,000 |
| Minors with unearned income | May be subject to the "kiddie tax". |
| Minors with self-employment income | Must file a tax return if income exceeds $400. |
| Minors as independent contractors | Must pay self-employment taxes if income exceeds $400. |
| Minors with unearned income over $1,300 | Must file a tax return. |
| Minors with unearned income over $2,600 | May be taxed at the parent's tax rate. |
| Minors with tax withholdings | May file a tax return to receive a refund. |
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What You'll Learn
- Minors who are dependents don't need to file a separate tax return
- Minors with earned income over $14,600 must file a tax return
- Minors with unearned income over $1,300 must file a tax return
- Minors with unearned income over $2,600 may be taxed at a parent's rate
- Minors with self-employment income over $400 must file a tax return
Minors who are dependents don't need to file a separate tax return
The question of whether minors have to file taxes is not a simple one, as tax requirements are not based solely on age. Anyone who receives a paycheck, including minors, automatically pays taxes, but whether or not they need to file a separate tax return depends on their dependency status and income.
Minors who are claimed as dependents on their parent or relative's tax return do not need to file a separate tax return. In the eyes of the Internal Revenue Service (IRS), all dependents are classified as “qualifying children” or “qualifying relatives”, with the qualifying child label being the most relevant for teenagers. A minor who is claimed as a dependent needs to file a return only if their income exceeds their Standard Deduction. For example, a child who earns $1,300 or more in "unearned income", such as dividends or interest, needs to file a tax return.
If a minor is a dependent of another taxpayer, they do not have to file a return if their unearned income (such as interest and dividends) is over $1,100. If their total earnings for the year are below the standard deduction amount, filing taxes as a minor might not be necessary. For example, a minor who earns less than $14,600 in 2024 will usually not owe taxes but may choose to file a return to receive a refund of tax withheld from their earnings.
If a minor is not a dependent, they must file a tax return if they receive $400 or more in tips or self-employment income. For unearned income, the filing threshold is $1,300 for the 2024 tax year.
It is important to note that there are specific exceptions depending on factors such as marital status, citizenship, and student status, so it is always best to consult the IRS website or a tax professional to understand your personal situation.
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Minors with earned income over $14,600 must file a tax return
In the United States, tax laws and agencies like the IRS don't set age guidelines. If a minor earns an income and meets certain criteria, they are required to file a federal and state tax return for the tax years they earned income.
Minors who qualify as dependents on their parent or relative's tax return do not have to file a separate tax return. In the eyes of the IRS, all dependents are classified as "qualifying children" or "qualifying relatives", with the qualifying child label being most relevant for teens. Generally, qualifying children follow specific criteria for the tax year, including the child's age, relationship to the taxpayer, residency, income, and support received.
If a minor who may be claimed as a dependent earns an income exceeding their standard deduction, they need to file a return. For the tax year 2024, a minor who earns less than $14,600 will usually not owe taxes but may choose to file a return to receive a refund of tax withheld from their earnings. If a minor has earned income over $14,600, they must file a tax return.
Earned income includes salaries, wages, professional fees, and other pay received for specific work performed. It may also include scholarships. For example, if a minor earned $15,000 in 2024, the first $11,600 they made would be taxed at 10%, and the remaining $3,400 would be taxed at 12%. As an employee, they would need to pay federal income tax. If they live in a state with income tax, they would need to pay state income taxes as well, which means filing a state tax return in addition to a federal tax return.
If a minor has both earned and unearned income, the rules are different. For the 2024 tax year, a minor can only gain up to $1,300 before they must file taxes independently. Unearned income includes interest, dividends, trust distributions, and capital gains. If a minor has unearned income over $2,600 in a year, they may be subject to the "kiddie tax", designed to prevent tax loopholes through children's lower tax rates.
It is important to note that minors may need to file taxes independently from their parents, depending on their income and dependency status, not just age. If a minor is required to file a tax return but fails to do so, they may face penalties and interest on any unpaid taxes.
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Minors with unearned income over $1,300 must file a tax return
In the US, tax laws and agencies like the IRS don't set age guidelines. If a minor earns an income and meets certain criteria, they are required to file a federal and state tax return for the tax years they earned income. Minors who qualify as dependents on their parent or relative's tax return do not have to file a separate tax return.
For tax year 2024, a minor should file a separate tax return from their parent if they have over $14,600 in earned income or over $1,300 in unearned income. Minors and dependents with unearned income over $2,600 in a year may be subject to the "kiddie tax", designed to prevent tax loopholes through children's lower tax rates.
Even if a minor isn't required to file a tax return, they may want to if doing so would result in a tax refund. A minor who earns less than $14,600 in 2024 will usually not owe taxes but may choose to file a return to receive a refund of tax withheld from their earnings. If a qualifying minor has paid more in taxes than they owe, they can receive a tax refund like any other taxpayer.
It's important to note that tax requirements are not solely determined by age. A minor's dependency status and income determine whether or not they have to file a separate tax return from their family.
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Minors with unearned income over $2,600 may be taxed at a parent's rate
In the US, tax laws and agencies like the IRS don't set age guidelines. If a minor earns an income and meets certain criteria, they are required to file a federal and state tax return for the tax years they earned income. Minors who qualify as dependents on their parent or relative's tax return do not have to file a separate tax return.
Earned income includes salaries, wages, professional fees, and other payments received for specific work performed. It may also include scholarships. For tax year 2024, a minor should file a separate tax return from their parent if they have over $14,600 in earned income or over $1,300 in unearned income.
Unearned income includes interest, dividends, trust distributions, and capital gains. It is typically passive income that does not involve actively working for the money earned. If a minor's unearned income exceeds $2,600 in a year, they may be subject to the "kiddie tax", designed to prevent tax loopholes through children's lower tax rates. This means they may owe taxes at the rate of their parents' tax bracket, unless the child's rate is higher.
Self-employed minors may need to pay taxes themselves. If a minor is required to file a tax return but fails to do so, they may face penalties and interest on any unpaid taxes. If a minor meets eligibility requirements, they can claim relevant tax credits and deductions just like any other taxpayer.
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Minors with self-employment income over $400 must file a tax return
In the United States, tax laws and agencies like the IRS don't set age guidelines. If a minor earns an income and meets certain criteria, they are required to file a federal and state tax return for the tax years they earned income.
Minors who qualify as dependents on their parent or relative's tax return do not have to file a separate tax return. In the eyes of the IRS, all dependents are classified as "qualifying children" or "qualifying relatives", with the qualifying child label being the most relevant for teens. Generally, qualifying children follow specific criteria for the tax year, including the child's age, relationship to the taxpayer, residency, income, and support received.
If a minor has earned income, they must file a tax return if their income exceeds the standard deduction for the tax year. For 2024, the standard deduction is $14,600, increasing to $15,000 in 2025. However, if a minor earns more than $400 by working a job such as babysitting or doing yard work in their neighbourhood, the IRS considers them to be self-employed, regardless of their age.
If a minor is required to file a tax return but fails to do so, they may face penalties and interest on any unpaid taxes. However, if a qualifying minor has paid more in taxes than they owe, they can receive a tax refund like any other taxpayer.
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Frequently asked questions
Students under 18 may have to pay taxes depending on their income and dependency status. If a student under 18 earns more than $400 as an independent contractor, they must pay self-employment taxes. If they are a dependent, they don't have to file a separate tax return.
Earned income includes salaries, wages, professional fees, and other pay received for specific work performed. It may also include scholarships.
Unearned income includes interest, dividends, trust distributions, and capital gains.
The standard deduction for a single filer in 2024 is $14,600 (increasing to $15,000 in 2025). If a student under 18 earns less than this amount, they don't need to file a tax return.
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