Teens & Taxes

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Many parents come into our office asking if their working teenager is required to file taxes. This can be especially confusing since the child is typically their dependent. It also begs a few questions:  When does my child have to file their own taxes? If they do, can I still claim them as a dependent?

There are a few guidelines you can use to determine if your teenager has to file their own taxes AND if they can still be claimed as a dependent on your tax return. In most typical scenarios, your child needs to file if they:

  • Paid any federal taxes (box 2 of W-2 Form)
  • Have earned income more than $6350
  • Have unearned income more than $1050
  • Meet other IRS filing requirements

Your child can be claimed as your dependent even if they file their own return in typical scenarios if:

Earned Income Credit: What is it and do I Qualify?

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Earned Income Credit (EIC) is a credit given to working taxpayers that fall within a specific income bracket. Working taxpayers that qualify for the Earned Income Credit fall within an income range that is low to moderate. According to the Internal Revenue Service (IRS), the Earned Income Credit (EIC) can help bring down the tax you owe or increase your refund amount.

It’s easy to see if you qualify for the EIC. Taxpayers that qualify for the EIC typically:

– have lower earned income
– have children (although those with no children often qualify)
– have earned income from work or self-employment
– meet ALL requirements as outlined by the Internal Revenue Service (IRS)

Call us and make an appointment or file online. Stars and Stripes Tax Service online filing system will walk you through the steps to determine if you qualify for the Earned Income Credit (EIC).

As always, contact us if you have questions. The Stars and Stripes Tax Service team is versed and updated on the current tax laws and are here to help!