|Tax Rate||2021 Taxable Income (Single Filer)||2022 Taxable Income (Single Filer)|
|10%||$0 – $9,950||$0 – $10,275|
|12%||$9,951 – $40,525||$10,276 – $41,775|
|22%||$40,526 – $86,375||$41,776 – $89,075|
|24%||$86,676 – $164,925||$89,076 – $170,050|
|32%||$164,926 – $209,425||$170,051 – $215,950|
|35%||$209,426 – $523,600||$215,951 – $539,900|
How Minors Pay Taxes on Employment Income
employment income—income earned in the shape of wages, salaries, tips, and equivalent sources—is taxable .
Reading: Teens and Income Taxes
How employment Income Is Taxed
employment income is taxed as ordinary income, meaning that the standard tax brackets apply. Employers are generally required to withhold taxes from an employee ’ south paycheck .
When an use teenager—or any use taxpayer—files their tax rejoinder for the year, they will compare their actual tax indebtedness for the year against the measure of taxes they have already paid during the year, such as through withholding on their paychecks .
If more taxes were withheld than they actually owe for the class, they will receive a refund ; if less taxes were withheld than they actually owe for the year, then they will need to pay the remainder to the government .
even if a adolescent international relations and security network ’ thymine required to file a tax return, it may still be a good estimate to do so in certain situations. For exemplar, if their employer withheld amounts from their wages, but they have no federal income tax liability, filing a hark back will allow them to get their income tax withholdings back as a refund .
What to Claim on Form W-4
When a raw employee starts a job, their employer typically provides the employee with a Form W-4 to complete so that the employer can know how a lot tax withhold to take out of their paycheck .
For teenagers that only have one job and no other sources of income, filling out the Form W-4 is a relatively straightforward job : Their personal information should be input in Step 1 and then they should sign the form on Step 5 .
If their position is more complicated—such as if they have multiple jobs, anticipate making more than $ 200,000 during the year, have dependents of their own, or non-wage income—they may want to use the on-line IRS Tax Withholding Estimator for guidance .
Freelancing and Odd Jobs Around the neighborhood
If a adolescent makes money by providing services apart from dinner dress employment, then they are considered to be freelance for income tax purposes .
It doesn ’ t matter if they spend dozens of hours a week freelance or mow a copulate of lawns on the weekends—this is all self-employment income for tax purposes .
In summation to regular income taxes, self-employment income is subject to another kind of tax called the “ self-employment tax. ”
This tax kicks in once a taxpayer has self-employment income of $ 400 or more during the year .
indeed even if a adolescent with self-employment income of, say, $ 1,000 may not have any regular tax indebtedness due to their income amount below less than their standard deduction amount, they may still have a self-employment tax liability and therefore still be required to file a tax return .
It ’ mho important to remember that self-employment income is internet of legitimate deductions .
If a adolescent makes, say, $ 600 this class mowing lawns, they may be able to deduct expenses such as fare costs to and from their function locations ampere well as the cost of any equipment they purchased for their lawn pout business .
When a Minor Has Capital Gains From Unearned Income
Of course, not all income is gain income. The following are examples of what the IRS considers unearned income :
- Capital gains
If a adolescent or other minor has more than a certain brink amount of unearned income, this income is subject to the “ kiddie tax. ”
This threshold sum is the specify amount of the standard discount for dependents for the year without gain income plus the greater of the limited sum of the standard deduction for dependents for the year without gain income or the minor ’ randomness enumerate deductions attributable to unearned income .
In 2021, because the specify amount of the standard deduction for dependents for the year is $ 1,100, the threshold amount is $ 2,200 for minors who do not itemize their deductions. In 2022, because the specify amount of the standard deduction for dependents for the class is $ 1,150, the threshold measure is $ 2,300 .
The amount of the child ’ second unearned income up to the limited standard deduction measure obviously debar tax due to the criterion discount, and the sum of the child ’ s unearned income above the threshold total is taxed at the minor ’ s fringy tax rate or the minor ’ south parents ’ borderline tax rate if their parents ‘ rate is higher than their own—this is the kiddie tax .
The Bottom Line
While there are some specific aspects of the tax code such as the kiddie tax that applies lone to teenagers and other minors, teens are—for the most part—taxed like any other taxpayer .
To the extent they earn income subject to tax that exceeds their standard deduction or enumerate deductions sum, or to the extent they earn self-employment income of $ 400 or more during the year, they will probably need to file a tax return—and pay some income taxes .
frequently Asked Questions ( FAQs )
Can a minor file taxes if their parents claim them as a dependent?
Yes, a minor can and may even be required to file taxes, even if their parents can claim them as a pendent. A minor will be able to claim the standard deduction, subject to some limitations.
How much does a teenager typically get back in tax refunds?
The fact is that there is no “ typical ” tax refund total for anyone of any historic period, and the IRS has not reported taxes paid by teens ( and excess refunded ) in several years. however, taxpayers can estimate how much tax they ’ ll owe ( and what their refund might be ), using the IRS tax calculator creature .