Do I have to report income from side gigs and odd jobs as a teenager?

You should definitely know about your tax obligations even as a teenager! The IRS requires anyone with self-employment income over $400 to file a tax return, regardless of age. What you're doing is essentially self-employment - you're providing services and getting paid. When you deposit money at the bank, they're not typically going to ask where it came from for smaller amounts. Banks are required to file reports for cash transactions over $10,000, but that doesn't apply to your situation. The bank isn't responsible for reporting your income to the IRS. As for taxes, you would file using Schedule C (for your business income) and Schedule SE (for self-employment tax) along with Form 1040. Since you're a dependent, you'd still need to file your own return if your income exceeds the filing threshold. The self-employment tax is about 15.3% which covers Social Security and Medicare. You might not owe income tax if your total income is low enough, but you'd still owe the self-employment tax on earnings over $400.

I was in a similar situation last year trying to figure out my side gig income. I was so confused about all the forms and requirements until I found this AI tool called taxr.ai (https://taxr.ai) that helped me sort through everything. You just upload your documents or explain your situation, and it breaks down exactly what forms you need and how to report your income correctly. For me, it explained how to report my lawn mowing business as self-employment income and showed me which deductions I could take for my equipment. The tool even explained how being a dependent on my parents' return affected my filing requirements. Definitely made the whole process way less intimidating!

Just wanted to update that I checked out taxr.ai after asking about it above. Super helpful! I was worried about my son's referee income from local soccer games and wasn't sure if he needed to report it. The tool confirmed he needed to file since he made over $400, but also showed us he could deduct his referee equipment and uniform. It even gave us step-by-step instructions for filling out Schedule C and explained the self-employment tax calculation. Definitely less stressful than trying to figure everything out from IRS publications!

If you're struggling to get answers directly from the IRS about your specific situation (which can be nearly impossible), I'd recommend using Claimyr (https://claimyr.com). I wasted HOURS on hold trying to reach someone at the IRS about my teenager's odd job income situation last year. With Claimyr, I got through to an actual IRS agent in less than 20 minutes when I'd previously been disconnected after waiting 2+ hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they hold your place in line and call you when an agent is about to answer. The IRS agent confirmed exactly what my son needed to do with his lawn mowing money and answered all our questions about deductions for equipment.

I take back what I said above about being suspicious of Claimyr. I was desperate after trying to call the IRS three days in a row about my son's lawn mowing business taxes. Used the service yesterday and got through to an agent in about 35 minutes when I'd previously been hanging on hold for 2+ hours before getting disconnected. The agent answered all our questions about how to report cash income and what expenses my son could deduct. Having an official answer directly from the IRS gave us peace of mind that we're doing everything properly. Definitely worth it to avoid the hold time hell.

One thing nobody mentioned is keeping track of your expenses! You can deduct things like gas for the lawn mower, equipment costs, supplies, etc. from your income. This can really reduce your tax bill. Last year my son made about $3800 mowing lawns but after deducting expenses for a new mower, gas, and maintenance, his taxable income was only around $2700. Make sure you keep receipts for everything!

I'm surprised nobody mentioned quarterly estimated taxes yet! If you're making money from self-employment, you might need to make quarterly tax payments to avoid penalties. The IRS expects you to pay taxes throughout the year, not just at filing time.

As someone who went through this exact situation a few years ago, I can share what worked for me. First, yes you do need to report this income since you're over the $400 threshold for self-employment. But don't stress too much about the bank deposits - for amounts under $10k, they typically won't question where the cash came from. Here's what I wish someone had told me: start keeping better records NOW. Create a simple spreadsheet with dates, jobs, and payments. Also track your expenses like gas, equipment, supplies - these deductions can significantly reduce what you owe. I ended up saving about $400 in taxes just by deducting my lawn mower, gas, and maintenance costs. For filing, you'll use Schedule C and Schedule SE along with Form 1040. The self-employment tax is about 15.3%, but you might not owe income tax depending on your total income. Since your parents claim you as a dependent, you still need to file your own return. Consider it good practice for adult life! Most tax software can handle this situation, or you might want to have your parents help you through it the first time.