Taxes for a 16 year old?

Yes, of course.

http://www.irs.gov/publications/p...1000203764

Quote from 420 : Yes, of course. http://www.irs.gov/publications/p...1000203764

Thanks, but that is clear as mud to me. Lots of examples for qualified dividends and capital gains, um yeah, he does not have rich grandparents who set him up with investments. I read somewhere that if we claim him on our taxes and he makes less than the Standard Deduction for a child, then he does owe any Federal tax on his earnings.

Sound familiar to anyone?

I am sure the State of Oregon wants their cut of his paycheck, but how much?

His age is not really of any relevance. If he has income, then it needs to be reported. Sans the taxable interest income, Example 1 is fairly similar to your situation: "Michael is single, age 15, and not blind. His parents can claim him as a dependent on their tax return. He has ... wages of $150." Whether or not he has to pay federal taxes will ultimately depend on how much he makes, not his age.

Quote from 420 : His age is not really of any relevance. If he has income, then it needs to be reported. Sans the taxable interest income, Example 1 is fairly similar to your situation: "Michael is single, age 15, and not blind. His parents can claim him as a dependent on their tax return. He has ... wages of $150." Whether or not he has to pay federal taxes will ultimately depend on how much he makes, not his age.

+1 Age is irrelevant. All you really need is the tax tables. He pays $x amount for making $x amount. Since you claim him, he cannot claim himself. So he files form 1040EZ (probably) and claims no deductions. If he makes under a certain amount, he will owe no taxes and any taxes withheld from his paycheck will be refunded. If you are certain he will not make enough to owe any taxes, he could request his payroll department not to withhold any taxes. However, he should still file a tax return.

Yes. You earn, you pay. I've had to pay taxes since I was 16 as well. I grew to dislike the IRS for "taking my money".

If you have TurboTax (or you can go on their website) or some other tax software, you can try inputting the info in that to see what it results. Also your kid is likely going to be claimed as your dependent, so just work out the numbers/estimates to see. He may probably end up not having to pay tax because of the wage threshold and will just get $ back. I remember when I was younger, I just worked part time over summer, and my paychecks were automatically deducting/withholding $ for taxes. I ended up getting $ back from the IRS because I didn't make that much that summer. (I'm speaking from a TX standpoint as we don't have state income tax, so it may be different in your situation if your state does) Either way, just use a tax software or their online tool to see what it results in.

His employers are required to file all the payroll taxes so he has to as well. The good thing is, probably due to his small amount of gross income he will get most of his withholding refunded.

Yes, of course!

This is what is relevant to your son since you are going to claim him:

Standard Deduction

The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of:

$950, or

The individual's earned income plus $300, but not more than the regular standard deduction (generally $5,800).


He loses his personal exemption since you claim him as a dependent.

Out of idle curiosity, what kind of morons were you asking on the other sites? It is pretty common sense that age would not make a difference when filing taxes/determining tax liability. If it did, I can assure you lots of people would be taking advantage of that loophole.

Quote from 1stbuy : Yes. You earn, you pay. I've had to pay taxes since I was 16 as well. I grew to dislike the IRS for "taking my money".

When I worked on campus in college my boss just had me write STUDENT on my W-4 and I got the full $3.85 per hour. No withholding, no W-2 and I never filed taxes until I got a "real" job after graduation.

Quote from RHCCapri : When I worked on campus in college my boss just had me write STUDENT on my W-4 and I got the full $3.85 per hour. No withholding, no W-2 and I never filed taxes until I got a "real" job after graduation.

$3.85? Whoa, when was the minimum wage that low?

Quote from 1stbuy : $3.85? Whoa, when was the minimum wage that low?

Let's just say is has been awhile. While working at the college computer center the minimum went from $3.85 to $4.40 and my boss was flipping out about going over his budget. I told him not to worry about it since the university blew that his annual budget gap on sports teams every week, and of course the university made up the difference. Oh and back then a six-pack of beer cost less than a six-pack of soda! Good times.

Now I just have to figure out State taxes and FICA for my kid.