Do 14 Year Olds Pay Taxes? Filing Requirements Explained
Clarify tax responsibilities for 14-year-olds. Understand the criteria for filing and how income is assessed for minors, ensuring compliance.
When a 14-year-old earns income, tax obligations depend on the amount and type of income received, not just age. Determining if a minor has tax responsibilities involves understanding income categories and specific thresholds.
Determining if a 14-Year-Old Must File
A 14-year-old’s income is categorized as earned (wages, tips, self-employment) or unearned (interest, dividends, capital gains, rents, royalties). Earned income is money received for work performed, while unearned income is passive.
A 14-year-old, considered a dependent for tax purposes, must file a tax return if their income exceeds specific thresholds. For the 2023 tax year, if a dependent’s earned income was more than $13,850, a tax return is generally required. If their income consisted solely of unearned income, filing is necessary if that amount was more than $1,250.
If a 14-year-old has both earned and unearned income, filing is required if their gross income exceeded the larger of $1,250, or their earned income plus $400 (up to $13,850 for 2023). Even if not strictly required, filing is beneficial if federal income tax was withheld, as it’s the only way to claim a refund.
Calculating a 14-Year-Old’s Tax Liability
Calculating a 14-year-old’s tax liability involves specific rules for dependents. A dependent can claim a standard deduction, which reduces taxable income. For 2023, this deduction is the greater of $1,250, or their earned income plus $400, up to the maximum standard deduction for a single individual ($13,850 in 2023).
Earned income received by a 14-year-old is generally taxed at the child’s own tax rate, similar to how adult wages are taxed. This means their earned income is subject to the standard federal income tax brackets. However, unearned income is subject to different rules, particularly due to what is known as the “kiddie tax.”
The kiddie tax applies when a child’s unearned income exceeds a certain amount. For 2023, the first $1,250 of a child’s unearned income is typically covered by their standard deduction and is tax-free. The next $1,250 of unearned income is generally taxed at the child’s own tax rate. However, any unearned income above $2,500 for 2023 is subject to the kiddie tax and is taxed at the parent’s marginal tax rate, rather than the child’s lower rate. This rule prevents parents from shifting investments to their children to avoid higher tax rates on unearned income.
Filing a Tax Return for a Minor
When a 14-year-old is required to file a tax return, the responsibility typically falls to a parent or legal guardian. The minor’s income is reported on their own federal income tax return, generally using Form 1040, and is not included on the parent’s tax return. The parent or guardian must sign the tax return on behalf of the minor.
Several common tax forms may be needed depending on the types of income the 14-year-old received. If the minor earned wages from a job, they would receive a Form W-2 from their employer. For unearned income, such as interest or dividends, they might receive Form 1099-INT or Form 1099-DIV. If the kiddie tax applies, Form 8615, Tax for Certain Children Who Have Unearned Income, must also be attached to the child’s tax return to calculate the tax on their unearned income.
Once all necessary forms are completed, the tax return can be filed electronically through IRS-authorized e-file providers or by mailing a paper return directly to the Internal Revenue Service. Electronic filing typically offers faster processing and confirmation of receipt. Choosing the appropriate method depends on individual preference and whether the complexity of the return warrants professional assistance.