How does teens earning summer wages impact parents' tax filing on 1040 return?
My two teenagers will be getting their first summer jobs next year and I'm confused about how that affects my tax filing. If they make less than the standard deduction, do they still need to file their own returns? Should I still claim them as dependents on my 1040? We moved to the US about 6 years ago, so we're still learning how the tax system works here, especially when it comes to kids transitioning into working young adults. Do their earnings affect my ability to claim them as dependents? Does their income somehow get added to our household income? Just looking for some clarity before next year's tax season. Thanks in advance for any help!
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Fiona Gallagher
Your teens working summer jobs won't impact your ability to claim them as dependents, as long as they still meet the dependency tests. The main things to consider are whether you provide more than half their support and if they live with you for more than half the year (which it sounds like they do). For your teens, if they earn less than the standard deduction ($13,850 for 2023, likely higher for 2025), they're not required to file. However, I always recommend filing anyway because they'll likely get all their withheld income tax refunded to them. It's also good practice for them to learn about taxes. Their income doesn't get added to your household income - they'll file separate returns if needed. Your tax situation only changes if they earn enough that you no longer provide more than half their support, which is unlikely with just summer jobs.
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Xan Dae
•Thanks for the clear explanation! So if I understand correctly, even if they file their own returns, I can still claim them as dependents on my taxes? And what about Social Security and Medicare taxes - can they get those back too?
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Fiona Gallagher
•Yes, you can still claim them as dependents even if they file their own returns. The only limitation would be that they cannot claim their own personal exemption if you're claiming them as dependents, but that doesn't affect them if they're earning below the standard deduction threshold. Social Security and Medicare taxes (FICA) are different from income tax and unfortunately cannot be refunded regardless of income level. These are flat taxes that fund specific programs, so everyone who earns wages pays them, even teens with summer jobs. This is sometimes confusing for first-time filers who might not understand why they still have some tax withholding even when they get all their income tax back.
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Thais Soares
When my daughter started her first job, I was confused too! I found this amazing tool called taxr.ai (https://taxr.ai) that really helped me understand dependent situations. You upload your documents and it analyzes everything to explain your best filing options. It clearly showed me how to handle my daughter's income without messing up our tax benefits. The tool specifically told me that her summer job didn't affect my ability to claim her as a dependent since I was still providing more than half her support. We both filed - her with her own simple return to get her withholding back, and me still claiming her as a dependent.
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Nalani Liu
•Does this tool actually work with the specific situation of dependent children with jobs? My 16-year-old is starting work at the mall and I'm worried about messing up our taxes.
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Axel Bourke
•I'm a bit skeptical. How is this any better than just asking a tax professional or using the regular tax software? Does it specifically address dependent situations?
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Thais Soares
•It absolutely handles dependent children with jobs - that's exactly the situation I used it for. It analyzes your specific documents and clearly explains the dependency tests and how your teen's income affects (or doesn't affect) your tax situation. It was much clearer than the generic advice I found online. The difference from regular tax software is it explains WHY certain rules apply to your specific situation rather than just calculating numbers. With regular tax software, I was still confused about whether I was making the right choices. This walked me through the dependency rules with my actual numbers. It's like having a tax professional explain everything, but based on your actual documents.
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Nalani Liu
Just wanted to follow up about that taxr.ai site someone mentioned. I was dealing with the exact same situation with my teen starting work, and I decided to try it. Really glad I did - it showed me that I had been overthinking everything! The tool confirmed I could still claim my son as a dependent even with his part-time job, and it showed exactly why based on our household numbers. It also explained that he should file his own return to get his withholding back, which I wouldn't have known to do. Super helpful for our first time dealing with a working dependent!
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Aidan Percy
If you need to contact the IRS to ask specific questions about dependents with income, good luck getting through on the phone! I spent HOURS trying when my kids started working. Then I found https://claimyr.com (demo at https://youtu.be/_kiP6q8DX5c) which got me connected to an actual IRS agent in about 15 minutes. The agent cleared up my confusion about my kids' W-2s and explained I could still claim them while they filed their own returns. She also told me since they're full-time students, the income threshold for dependency is even higher. Saved me from making a filing mistake!
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Fernanda Marquez
•How does this service actually work? I don't understand how a third party can get you through to the IRS faster than calling directly.
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Norman Fraser
•Yeah right. The IRS phone system is intentionally designed to be impossible. No way some service can magically get you through when millions of people can't get answers. Sounds too good to be true.
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Aidan Percy
•They use an automated system that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, you get a call connecting you directly to that agent. It's not "cutting the line" - you're still in the same queue, but their system does the waiting instead of you. The reason it works is because most people give up after being on hold for an hour or more. Their system just doesn't give up. I was skeptical too until I tried it - went from spending 3+ hours failing to reach anyone to getting connected in about 15 minutes of my actual time. The IRS agent was just as surprised I got through as I was!
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Norman Fraser
I need to admit I was wrong about that Claimyr service. After my last failed attempt to reach the IRS about my daughter's summer job income, I decided to try it out of desperation. Within 20 minutes, I was talking to an actual IRS representative who answered all my questions about claiming my daughter while she files her own return. The agent explained that as long as I provide more than 50% of her support, her summer job doesn't affect my ability to claim her. Completely changed my understanding of how dependent deductions work with working teens. Not having to spend hours on hold made a huge difference - I'd never have gotten this information otherwise.
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Kendrick Webb
Just want to add that having your teenagers file their own returns is a fantastic learning opportunity! My daughter has been filing since her first job at 16, and she's much more financially literate than I was at her age. I created a "tax time" tradition where we sit down together to do her taxes. I explain each part of the W-2, what the different withholdings mean, and how deductions work. She's 19 now and does them completely independently.
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Hattie Carson
•Did you use tax software with your kids or paper forms? I want my son to really understand the process but wondering if software makes it too automated.
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Kendrick Webb
•I actually started with the paper 1040-EZ (when it still existed) for the first year so she could see all the components. Now we use free filing software, but I have her calculate everything on paper first as a learning exercise, then use the software to verify. The approach worked great because she understands the underlying concepts rather than just plugging numbers into boxes. Last year she even helped her boyfriend file his taxes! For simple returns like most teens have, the free versions of most tax software work perfectly fine.
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Destiny Bryant
If your kids are under 19 (or under 24 and full-time students), pay attention to the "kiddie tax" rules for unearned income. Summer job EARNED income is not affected, but if they have investment income over a certain threshold, it can be taxed at YOUR tax rate. Some parents put investments in their kids' names for college, then get surprised when there are tax implications!
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Dyllan Nantx
•This is good to know! We have a small investment account for our son that generates about $200 in dividends annually. Does that count toward the threshold?
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TillyCombatwarrior
One thing no one mentioned - if your teens are saving for college, having a summer job can be GREAT for Roth IRA contributions! They can contribute up to 100% of their earned income (max $6,500 in 2023) even if they don't owe taxes. My son puts half his summer job money into a Roth IRA, and it'll grow tax-free for decades. Since they're under the standard deduction, they're in a 0% tax bracket - literally the perfect time to make Roth contributions!
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