Summer Tax Tips For Teens

      For teens, a summer job can be their first opportunity to put money in the bank.{} And their first experience with Uncle Sam taking his share out.{} But keeping tabs on taxes now, could make it much easier to file a return in the spring, when teens might even get some of that money back.{} The IRS says:

      • Start by filling out w-4 forms.{} If you're working multiple jobs, you'll need this withholding form at each location, so employers withhold the right amount to cover your entire tax liability due in April.{}
      • Working at a restaurant? Don't forget that tips are taxable too.
      • If you're drumming up business on your own for odd jobs like babysitting and lawn care, that's subject to income tax too.{}
      • And if those odd jobs add up to income of 400 dollars or more, you'll also have to pay self-employment tax.
      The good news for some teens, their summer income may be so low that they end up owing little or no tax at all next April.{}