Does My Teenager Have to File Taxes?
Understand the specific income rules for dependents to determine if your teen must file a tax return or if it would be financially advantageous to do so.
The tax rules for a dependent are distinct from those for other individuals, and understanding them requires knowing the specific income thresholds set by the Internal Revenue Service (IRS). The requirements depend on the type and amount of income the teenager has earned during the tax year, which determines the filing obligations for a dependent.
Filing Thresholds for a Dependent Teenager
A dependent teenager’s need to file a tax return depends on their gross income, which is all income not exempt from tax. The filing rules differ based on whether the income is earned, unearned, or a combination of both. These thresholds apply specifically to individuals who can be claimed as a dependent on someone else’s tax return.
For the 2025 tax year, a dependent teenager with only earned income must file a return if that income exceeds $15,000. Earned income primarily consists of wages, salaries, tips, and other taxable employee pay. It also includes any net earnings from self-employment. If the teen’s total earned income is at or below this amount, they do not have a filing requirement.
A different rule applies to unearned income, which includes interest from savings accounts or dividends from investments. For 2025, a dependent must file a tax return if their unearned income is more than $1,350.
When a teenager has both earned and unearned income, they must file a return if their gross income is more than the greater of two amounts: $1,350, or their total earned income plus $450. For example, if a teen earned $3,000 from a job and received $500 in interest, their gross income is $3,500. The filing threshold is the greater of $1,350 or their earned income plus $450 ($3,000 + $450 = $3,450). Since their $3,500 gross income is more than this threshold, they must file a tax return.
A separate rule applies to self-employment income. If a teenager earns $400 or more in net earnings from self-employment, they must file a tax return and pay self-employment taxes. This applies to income from activities like gig work, babysitting, or lawn mowing, regardless of other income thresholds. Net earnings are calculated by subtracting business expenses from the gross income earned.
Potential Benefits of Filing a Return
Even if a teenager’s income is below the filing thresholds, it can be beneficial to file a tax return. The primary reason is to receive a refund of taxes withheld from their paychecks.
If an employer withheld federal income tax from a teenager’s wages, this amount is shown in box 2 of their Form W-2. For instance, if a teen earned $5,000 and had $300 withheld, they would not be required to file. By filing a tax return, they could receive that $300 back as a refund if they have no tax liability.
Filing a tax return also establishes an official record of earned income with the IRS. This record is a prerequisite for contributing to a Roth Individual Retirement Account (IRA), a retirement savings tool. By filing, a teenager documents their earnings, which allows them to begin investing for their future.
Information and Forms Needed to File
To prepare a teenager’s tax return, it is necessary to gather several key pieces of information and specific documents. Having these items organized beforehand simplifies the process of completing the tax forms accurately. The most fundamental requirement is the teenager’s personal information.
To prepare the return, you will need the teenager’s personal information, including their full name as it appears on their Social Security card, date of birth, current address, and Social Security Number (SSN).
You must also collect all relevant income documents. These may include:
- Form W-2, which details wages and taxes withheld.
- Form 1099-NEC for gig work or independent contractor income.
- Form 1099-INT for interest income.
- Form 1099-DIV for dividends.
- Form 1099-B for proceeds from selling stocks or other securities.
An important step when filling out Form 1040 is to check the box indicating that the teenager can be claimed as a dependent. This declaration is important because it directly impacts the amount of the standard deduction the teen is eligible to claim. Failing to check this box can lead to an incorrect tax calculation.
How to Submit the Teenager’s Tax Return
Once all the necessary information has been gathered, the final step is to complete and submit the tax return. There are several methods available for filing, but the most common is electronic filing, or e-filing.
Many taxpayers can use IRS Free File, a partnership between the IRS and tax software companies offering free tax preparation and e-filing services to those who meet income requirements. Commercial tax software is another popular option that guides filers through the process for a fee. For those who prefer a traditional approach, paper filing is also available, with forms accessible on the IRS website.
For e-filing, you review the completed return for accuracy and transmit it to the IRS through the software, which provides a confirmation once the return is accepted. If filing by mail, the completed paper forms must be sent to the IRS service center address listed in the form’s instructions.
An acceptance notification from the IRS arrives within 48 hours for e-filed returns. If a refund is due, it is issued within 21 days for most e-filed returns but can take longer for paper-filed returns.