Does my teenager need to fill out federal income tax forms?
Teenagers generally don’t want to think about taxes. (Neither do adults, for that matter.) It's eye-opening enough entering the working world and seeing all the taxes taken out of each paycheck. Unfortunately for your teen and others, if they worked a job with taxable income, they must file federal income tax forms. Luckily, they’ll most likely fill out the tax forms 1040EZ when filing. This is the easiest set of federal income tax forms available.
When They Start
Make sure you sit down with your teen when they first start their job. They will need to fill out a W-4. This is for information purposes for the employer. It provides them with your teen’s personal info like their name, address and Social Security Number.
It also provides them with how much to withhold during tax time. As they are a teen, more than likely you claim them on your taxes. You must let the employer know this is the case. You will mark a “0” when it asks if anyone can claim the teen on their federal income tax forms.
Come January, the teen’s employer will send the W-2 tax forms that they need in order to file their taxes. These federal income tax forms show that amount of national and state tax that was taken out of your teen's wages over the tax year. Your teen will use these to fill out their tax forms to report their earnings.
Upon receiving their W-2s, find the federal income tax forms they need. They can usually be found at the post office or the library. Better yet, locate them on the IRS website and print them out.
As your teen more than likely doesn’t have any deductions or allowances, they will most likely be able to file the tax forms 1040EZ. These are the easiest version of the 1040 to fill out, as they just report simple information like income. Help them fill out their personal info, just like on the W-4. Then follow the tax forms 1040EZ’s instructions to report their income.
Keep in mind if you claim them on your taxes, they cannot take the personal exemption.