Getting What I Want for LessBanking on my OwnThe Ins and Outs of CreditFinding the Job for Me

Do you have a Question you want answered?

If you can't find the answer to your question below, type in your question here. If appropriate, we'll post an answer on this website.
Survey Verification For verification that you are human, please enter the following code in the box below: TWIZGH

(if the code is not entered correctly, the survey will not be submitted)
 
 

How much money does a teen need to make before he or she must file a tax return?

Thanks for asking such a great questions. There are a couple different situations to consider regarding teens and the filing of tax returns. So, it’s good to know when teens have to file.
 
First you need to know that the IRS has two categories of income.
  • Earned income equals wages, tips, self-employment income, taxable scholarships, fellowships, etc.
  • Unearned income includes interest, dividends, etc. This type of income comes from savings and investments in stocks, money market accounts and the like.
If a parent or other guardian claims you as a dependent on their taxes you are considered an unmarried dependent. As an unmarried dependent you must file a tax return if your earned or unearned income exceeds federal limits. These limits are set by the IRS and change every year. So check for the tax year you are interested in. 
 
Here’s an example: In 2010, if you were 18 and living at home and your parents still claimed you as a dependent, you would have been required to file a tax return if you met the IRS income guidelines below. However, you would not be able to claim yourself as a dependent. 
 
 In 2010 you would have had to file a tax return if your: 
  • Unearned income was more than $950 OR
  • Earned income was more than $5,700 OR
  • Gross income (unearned and earned income before any deductions such as taxes, medical premiums, savings contributions, etc.) was more than the larger of
  • $950 in unearned income, or
  • Your earned income was more than $5,400 plus $300
Even if you do not have to file based on the above requirements, you should file a return under these circumstances:
  • if you had taxes withheld from your paycheck. You may get a tax refund for the some or all the taxes that were taken out of your paycheck.
  • if your employer did not take taxes out of your paycheck.
  • if you were self-employed and earned more than $400.
  • if you owe Social Security or Medicare tax on tips not reported to your employer.

Un En Español:

View All Questions
UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION
Copyright © 2008 - The Regents of the University of California. All rights reserved. • E-Mail Web Master • ANR Non-Discrimination Statement