Does a 15 Year Old Have to File Taxes?

A 15-year-old’s obligation to file federal income taxes depends primarily on the amount and type of income they receive during the tax year. While many minors may not earn enough to trigger a filing requirement, certain income levels and sources can necessitate submitting a tax return. Understanding these specific thresholds and income classifications is important for determining whether a filing obligation exists.

Income Thresholds for Filing

A 15-year-old, considered a dependent for tax purposes, must file a federal income tax return if their gross income exceeds specific thresholds. These thresholds differ based on whether the income is earned or unearned. For the 2023 tax year, a dependent must file if their earned income was more than $13,850. Earned income includes wages, salaries, and tips from a job.

The rules for unearned income are different. A dependent must file if their unearned income was more than $1,250. Unearned income includes sources like interest, dividends, and capital gains. If a dependent has both earned and unearned income, they must file if their gross income (earned plus unearned) was more than the larger of $1,250, or their earned income up to $13,450 plus $400. The “kiddie tax” rules apply to a minor’s unearned income that exceeds certain amounts, often resulting in that income being taxed at the parent’s marginal tax rate. For 2023, if a dependent child’s unearned income was more than $2,500, the kiddie tax provisions generally apply to the amount over $2,500. This rule can lead to a higher tax liability on unearned income compared to standard dependent income taxation.

Common Income Sources for Minors

A 15-year-old can receive income from various sources, which are classified as either earned or unearned for tax purposes. Earned income comes from personal services performed, such as wages from a part-time job, reported on a Form W-2. Income from babysitting, lawn mowing, or online tasks in the gig economy is considered self-employment income, reported on a Form 1099-NEC if it exceeds $600 from a single payer. This type of income is subject to self-employment taxes, which cover Social Security and Medicare contributions.

Unearned income includes passive sources like interest earned from savings accounts or bonds, reported on a Form 1099-INT. Dividends from investments are reported on a Form 1099-DIV. Capital gains from selling assets are reported on a Form 1099-B. Income from trusts can also be a source of unearned income for a minor.

Scholarships and grants can also be a source of income, and their taxability depends on how the funds are used. Amounts used for qualified education expenses like tuition and fees are generally not taxable. However, any portion used for non-qualified expenses, such as room and board, travel, or optional equipment, becomes taxable income.

Benefits of Filing Even If Not Required

Even if a 15-year-old’s income does not meet the mandatory filing thresholds, filing a tax return is advantageous. The most common reason is to receive a refund of any federal income tax withheld from their paychecks. If a 15-year-old worked a W-2 job and their employer withheld federal income tax, they may be entitled to a refund if their total tax liability is less than the amount withheld. Filing a return is the only way to claim this refund.

Filing a return can also establish a tax filing history. Having a record of filing tax returns can be beneficial for future financial activities, such as applying for student loans, scholarships, or certain types of financial aid. It also helps the minor become familiar with the tax system, preparing them for future financial responsibilities.

Gathering Information for Tax Filing

Before beginning the tax filing process, a 15-year-old or their parent/guardian must gather all necessary personal and income documents. Personal details required include the full name, Social Security number (SSN), date of birth, and current address.

Income documentation is collected from various sources depending on the type of income received.

A Form W-2 is received from an employer and reports total wages, federal income tax withheld, and state income tax withheld.
For interest income, a Form 1099-INT will detail the amounts earned.
Dividends received are reported on a Form 1099-DIV.
If the 15-year-old sold stocks or other investments, a Form 1099-B will report the sales proceeds.
For self-employment income, a Form 1099-NEC may be issued if payments from a single payer exceeded $600.

Most 15-year-olds are considered dependents and cannot claim themselves as a dependent on their own return, and their standard deduction is limited by specific IRS rules.

The Tax Filing Process

Once all necessary information and documents have been gathered, the actual tax filing process can begin. Several options are available for preparing and submitting the tax return. Many taxpayers choose to use tax software or online tax preparation services, which guide users through the process by asking questions and prompting for information from the collected documents like W-2s and 1099s. These tools typically handle the calculations and form population automatically.

Alternatively, tax returns can be prepared using paper forms obtained directly from the IRS website. For a 15-year-old, this would generally involve Form 1040, along with potentially Schedule 1, Schedule B, or Schedule C if they had self-employment income. A minor’s unearned income may sometimes be reported on their parent’s tax return using Form 8814, if specific conditions are met, which can simplify the filing process by avoiding a separate return for the child.

After the return is prepared, it can be submitted electronically (e-file) through tax software or a tax professional, which is generally the fastest and most secure method. Paper returns must be mailed to the appropriate IRS address, which varies by geographic location. After submission, taxpayers typically receive a confirmation of filing, and refunds for e-filed returns are often processed within 21 days.

References

Internal Revenue Service. Publication 929.
Internal Revenue Service. Form 1099-NEC.