Did your teen have a job this summer?

Before you put up that sunscreen and pack those backpacks for school, there’s one more summer task yet to be done. If your teenager had a summer job, the IRS wants you to know you may need to pay Uncle Sam.

  1. Double check to make sure the employer withheld the correct amount from your teen’s paycheck. You can use the Withholding Calculator on IRS.gov.
  2. Any tip income your teen received is taxable income and subject to federal income tax.
  3. Many students do odd jobs over the summer to make extra cash. Earnings received from self-employment are subject to income tax. These earnings include income from odd jobs like baby-sitting and lawn mowing.
  4. If your teen made net earnings of $400 or more from self-employment, he or she will also have to pay self-employment tax. The self-employment tax is figured on Form 1040, Schedule SE.
  5. Food and lodging allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.
  6. While special rules apply to services you perform as a newspaper carrier or distributor, generally speaking, newspaper carriers or distributors under age 18 are not subject to self-employment tax.