Summer Jobs for Kids

Taking a summer job is a rite of passage for kids and an excellent way for them to learn financial responsibility while earning and spending their own money.

TAX WITHHOLDING

Generally, a child working a W-2 job, earning less than the 2022 standard deduction amount of $12,950, is considered a dependent and won’t need to file a tax return. However, it may be a good idea to file if federal income tax was withheld, because the child may be entitled to a refund.

BRANCHING OUT

When minors start doing things like babysitting or lawn care, they are technically self-employed. In this case, generally, if their net earnings (gross income less all eligible business expenses) exceed $400, they will need to file a tax return. Be sure your child keeps track of their expenses for things like mileage and equipment purchases.

When your children start earning their own money, help them learn about budgeting and saving. Distinguishing between wants and needs will help them create a realistic budget while saving money.