How to Get Money as a Minor: Jobs, Laws, and Taxes

Earning money as a minor fosters independence and teaches financial skills. It provides an opportunity to understand the effort involved in earning income and achieving personal goals. Early work experience offers practical lessons in responsibility and self-sufficiency, whether saving for a purchase, contributing to education, or managing spending money. This journey involves understanding legal requirements, managing earnings, and learning about tax obligations.

Legal Considerations for Minor Work

Federal and state child labor laws govern minor employment, protecting young workers’ health and education. The Fair Labor Standards Act (FLSA) sets federal standards, setting minimum ages, work hours, and hazardous job prohibitions. Children under 14 are restricted from most non-agricultural employment, with exceptions for casual work, acting, or working for parents.

For minors aged 14 and 15, the FLSA permits work in non-hazardous jobs with strict hour limits. During school sessions, these minors can work up to 3 hours on a school day and 18 hours weekly. Their workday cannot begin before 7:00 a.m. or go past 7:00 p.m., though this evening restriction extends to 9:00 p.m. between June 1 and Labor Day. During breaks, they may work up to 8 hours a day and 40 hours per week.

Minors aged 16 and 17 face fewer federal work hour restrictions, allowing unlimited hours in non-hazardous occupations. Federal law prohibits all minors under 18 from hazardous jobs due to hazards. Prohibited occupations include operating power machinery, driving for work, mining, logging, or handling explosives/radioactive substances. Certain manufacturing or processing jobs are restricted for younger minors.

Many states require minors to obtain a work permit before starting a job. These permits verify age and ensure work aligns with regulations. The process involves the minor, a parent or guardian, and the prospective employer completing an application submitted to a school or state labor department. Parental consent acknowledges approval and awareness of job nature and hours.

Common Ways Minors Earn Money

Minors have various opportunities to earn money, from informal neighborhood services to structured employment, developing valuable skills and financial independence.

Service-based neighborhood jobs are common: babysitting ($15-$25/hour), pet sitting, lawn care ($20-$50/yard), snow shoveling, and car washing. Opportunities are found through word-of-mouth or local flyers.

Online opportunities exist, but parental oversight is important. Tech-savvy minors can do graphic design, web development, or coding. Content creation (e.g., educational videos) on monetized platforms can generate income, following age/supervision rules. Online surveys are an option via reputable platforms requiring parental consent.

Creative ventures allow minors to explore interests and develop business skills. Selling handmade crafts (e.g., jewelry) at local markets or online with parental assistance can be profitable. Baking/selling goods or operating a lemonade stand teach sales/customer service. Reselling decluttered items (e.g., toys) through online consignment or local swap meets introduces inventory management and pricing.

For minors aged 16 and 17, formal part-time employment is more accessible. Jobs include retail, food service, lifeguarding, or camp counseling. These roles provide structured work environments, consistent paychecks, and professional experience. Formal employment requires a work permit and adherence to employer policies.

Managing Your Income

Effectively managing earned money is key to financial literacy, providing minors with practical skills for financial stability and goal attainment.

Opening a bank account offers secure storage and tracking for funds. Minors need a parent or guardian as a joint owner or to open a custodial account. Savings (interest-earning) or checking (debit card access) accounts are common. Banks require identification for both minor and adult, plus Social Security numbers.

Budgeting helps minors understand where money goes by tracking income and expenses to prevent overspending. Categorizing spending into “needs” (e.g., school supplies) and “wants” (e.g., entertainment) helps them see how choices impact resources and allocate funds.

Setting aside money for specific goals is important. Minors can establish short-term goals (e.g., a video game) and longer-term aspirations (e.g., college expenses). Regular savings deposits help achieve goals, building financial reserves and instilling patience.

Tax Basics for Minors

Understanding tax obligations is important for earning income, even for minors. While many may not earn enough to owe federal income tax, certain thresholds trigger a filing requirement.

A minor needs to file a federal income tax return if their total income exceeds the standard deduction for the tax year. For 2024, if a minor’s earned income (from wages or self-employment) is more than $14,600, or their unearned income (like interest or dividends) is more than $1,300, a tax return is required.

Income earned by a minor is categorized as “earned income” or “unearned income.” Earned income includes wages, salaries, or tips from a job, and net earnings from self-employment (e.g., babysitting). Unearned income comes from sources where the minor does not actively work, like interest, dividends, or capital gains.

When a minor is required to file a tax return, the responsibility falls to the minor. However, a parent or guardian can elect to include the minor’s unearned income on their own tax return under certain conditions. For earned income from a formal job, the minor receives a Form W-2 from their employer. If self-employed, they may receive a Form 1099-NEC and report business income/expenses on Schedule C.

The “Kiddie Tax” is a provision to prevent parents from shifting unearned income to avoid higher tax rates. This tax applies to a minor’s unearned income above a certain amount, taxing it at the parent’s marginal tax rate instead of the child’s lower rate. For 2024, the Kiddie Tax applies to unearned income exceeding $2,900. This rule impacts minors with substantial investment income.

Minors may be subject to Federal Insurance Contributions Act (FICA) taxes (Social Security and Medicare). If a minor works in formal employment, FICA taxes are withheld from their paycheck. For casual jobs like babysitting or lawn care where the minor is self-employed, FICA taxes apply if net self-employment earnings exceed $400. In these cases, the minor is responsible for paying both employer and employee FICA portions (15.3% of net earnings).