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Teen Summer Jobs & Taxes - 2022

Is your teenager planning on working this summer? Below are a few guidelines about teens and taxes that might be helpful so you can give your child good advice on how to handle their summer earnings wisely:


  • If your teen works part-time, fills out a W-4, and makes less than $12,950 in 2022, they generally won’t be required to file a return.

  • However, if your teen earns over $12,950 in 2022, they will need to file a return—independent of your own. Remember, filing a return for your teen does not hinder you from claiming them as a dependent on your return.

  • If your teen works as an independent contractor, they will receive Form 1099 at the end of the year, but only if they made more than $600. While they may not owe federal income tax (if they made less than $12,950), they will need to pay self-employment tax on their earnings.

  • If your teen starts their own business (lawn care, for example), they are self-employed and will need to pay self-employment tax on earnings more than $600.

  • If you hire your teen to work for your family business or your teen works as a “household employee” and was paid cash wages of $2,300 or more in 2021, there are special tax considerations to look into.


Bottom line: Make sure your teen knows that they may owe federal taxes for those summer and household jobs. If your teen owns their own business or works as an independent contractor, you’ll need to keep an eye on their earnings and revisit the topic at tax time too. If you have questions, shoot us a quick email with your teen’s job information, and we’ll do what we can to help.

Please keep in mind the info above is for informational purposes only and is not intended to provide tax, legal, or accounting advice—every situation is different.


The Gasaway Team





7110 Stadium Drive

Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834

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This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. The information provided is for educational purposes only and not intended to provide any investment, tax or legal advice. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website.

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