Does a 14-Year-Old Have to File Taxes? Here’s What to Know

Taxes might not be a 14-year-old’s priority, but in some cases, they may need to file a return. While most teenagers don’t earn enough to owe taxes, certain income types or earnings above specific thresholds could require filing.

Understanding when a young person must file helps avoid penalties and ensures compliance with IRS rules.

Minimum Income Threshold

The IRS sets income thresholds to determine whether a dependent, including a 14-year-old, must file a tax return. In 2024, a dependent with only earned income—such as wages from a job—must file if they make more than the $14,600 standard deduction. If they earn less, filing is generally unnecessary.

Unearned income, such as interest or dividends, has a lower threshold. If a dependent earns more than $1,250 in unearned income, they must file. If they have both earned and unearned income, they must file if their total income exceeds the larger of $1,250 or their earned income plus $400, up to $14,600.

Even if filing isn’t required, it can be beneficial. If an employer withheld federal income tax, filing allows them to claim a refund. Many young workers have taxes deducted even when they owe nothing, and the only way to get that money back is by filing.

Dependent vs. Independent Filing

A 14-year-old’s filing status depends on whether they are a dependent or an independent taxpayer. The IRS defines a dependent as someone who relies on another person, typically a parent or guardian, for financial support. Most teenagers fall into this category, meaning their income is subject to different filing rules than someone supporting themselves.

Being a dependent affects how income is reported and whether certain tax benefits apply. Parents can claim dependents on their tax returns, which may provide advantages like the Child Tax Credit. However, if a dependent earns enough, they may need to file their own return.

A dependent’s earned income is taxed at standard rates, but unearned income above a certain threshold may be subject to the “kiddie tax.” This tax applies to investment earnings and can result in a portion of the dependent’s unearned income being taxed at the parent’s higher rate. This rule prevents families from shifting large amounts of investment income to children to take advantage of lower tax brackets.

Types of Taxable Earnings

A 14-year-old’s income can come from different sources, each with its own tax implications. While wages from a traditional job are common, self-employment earnings and investment income can also be taxable.

Employment

Wages earned from a part-time job, such as retail or restaurant work, are considered earned income and are subject to federal income tax, Social Security tax, and Medicare tax. Employers typically withhold these taxes and report them on a W-2 form issued at year-end.

For 2024, the Social Security tax rate is 6.2%, and the Medicare tax rate is 1.45%, both applied regardless of income. Federal income tax withholding depends on total earnings and W-4 form exemptions. If earnings are below the $14,600 standard deduction and no other taxable income exists, a 14-year-old may claim a refund for any withheld federal income tax.

Some jobs, like babysitting or yard work, may not involve tax withholding. If classified as an employee, their employer handles payroll taxes. If considered an independent contractor, they may need to pay their own taxes.

Self-Employment

Income from freelance work, gig jobs, or small businesses is considered self-employment income and follows different tax rules. A 14-year-old earning $400 or more from self-employment in a year must file a tax return and pay self-employment tax, which covers Social Security and Medicare.

The self-employment tax rate for 2024 is 15.3%—12.4% for Social Security and 2.9% for Medicare. Unlike employees, who split these taxes with an employer, self-employed individuals pay the full amount. However, half of the self-employment tax can be deducted from taxable income.

For example, if a teenager earns $1,000 from mowing lawns, they owe $153 in self-employment tax but can deduct $76.50 when calculating taxable income. Keeping detailed records of income and expenses is important, as certain costs, like equipment or advertising, may be deductible.

Investments

Unearned income from investments, such as interest, dividends, or capital gains, is taxed differently than earned income. If a 14-year-old receives more than $1,250 in unearned income in 2024, they must file a tax return. If total unearned income exceeds $2,500, the “kiddie tax” applies, meaning a portion may be taxed at the parent’s rate.

For example, if a teenager has $3,000 in dividends, the first $1,250 is tax-free, the next $1,250 is taxed at their rate, and the remaining $500 is taxed at their parent’s rate.

Capital gains from selling stocks or other investments are also taxable. Investments held for more than a year qualify for lower long-term capital gains tax rates, while those held for a year or less are taxed as regular income.

Potential Penalties for Not Filing

Failing to file a required tax return can lead to financial consequences. The IRS imposes a Failure to File Penalty, starting at 5% of unpaid tax per month, up to 25%. If a return is more than 60 days late, the minimum penalty is $510 or 100% of unpaid tax, whichever is smaller.

Interest accrues on unpaid taxes from the original due date until the balance is paid. The interest rate is determined quarterly, calculated as the federal short-term rate plus 3%, compounding daily.

Not filing can also delay refunds. If a 14-year-old had taxes withheld but doesn’t file, the IRS won’t issue a refund until a return is submitted. There’s a three-year window to claim a refund, after which the IRS keeps any unclaimed amount.