I need help with taxes for my teenager's lawn mowing business

Your son is showing some great entrepreneurial spirit! Here's what you need to know about taxes for his lawn mowing business: Since he's earned over $400 in self-employment income, he'll need to file a tax return and pay self-employment taxes (Medicare and Social Security) even as a dependent. This is true regardless of his age. He'll use Schedule C to report his business income and expenses. He can deduct legitimate business expenses like gas for the mower, any repairs needed specifically for the business, business-related supplies, etc. Keep good records of these expenses with receipts. For federal income tax (beyond self-employment tax), he would only owe if his total income exceeds the standard deduction ($12,950 for 2024), which it sounds like he's well under. Don't worry too much! This is pretty straightforward and good experience for him to learn about taxes and running a business.

I went through something similar with my daughter's babysitting business last year. I found this amazing service called taxr.ai (https://taxr.ai) that really helped us figure out all the self-employment stuff. It analyzed her situation and gave super clear guidance on what forms we needed and what expenses we could deduct. It even helped us understand how to track her income properly. Honestly made the whole process way less intimidating for both of us. Might be worth checking out for your son's lawn business.

Just wanted to update that I tried taxr.ai for my kid's dog walking business after seeing the recommendation here. It was exactly what we needed! The system walked us through everything step by step and explained which expenses were deductible (like the portion of her phone she uses to coordinate with clients and special leashes she bought). It also helped us set up a simple system to track her income going forward. My daughter actually enjoyed learning about it too - definitely teaching her valuable real-world skills. So glad I found this before tax season hit!

If you're having trouble reaching the IRS to ask specific questions about your teen's business (which I absolutely did with my son's lawn business), try Claimyr (https://claimyr.com). They have this service that gets you through to an actual IRS person without the endless hold times. I was skeptical until I watched their demo video (https://youtu.be/_kiP6q8DX5c) and decided to try it. Got through to an IRS agent in about 15 minutes when I had been trying for DAYS on my own. The agent answered all my specific questions about my son's lawn care business and what forms we needed. Saved me so much stress!

I have to apologize for my skepticism about Claimyr. I decided to try it yesterday after struggling for a week to get through to the IRS about my daughter's Etsy business (similar tax situation to the lawn mowing). It actually worked! Got connected to an agent within 20 minutes who answered all my questions about Schedule C and self-employment taxes for teens. The agent even explained that my daughter should be keeping mileage records for when we drive her to buy supplies. Definitely worth it just for the time saved - I'd wasted hours on hold previously. Consider me converted!

I recently went through this with my son's car detailing business. One thing to keep in mind - have your son keep track of ALL business expenses. Mine could deduct: - Gas for the lawn mower - Oil changes for the mower - Portion of your water bill if he uses water to clean equipment - Any lawn bags he buys - Repairs to equipment used for the business - Business cards if he makes any He should keep receipts for everything and maybe use a simple spreadsheet to track income/expenses. This will make tax time WAY easier and maximize his deductions.

Will he get in trouble if he doesn't report the cash payments? Most of his customers pay in cash anyway, and it's not like the IRS would know about it...

Don't forget to check local requirements too! My teenager had to get a business license for his lawn business in our town even though he's under 18. It only cost $25 but we had no idea until a neighbor (who happens to work for the city) mentioned it to us. Some places don't require it for minors or under certain income levels, but worth checking your local rules.

Great question! I went through this exact situation with my daughter's tutoring business last year. Here are the key points that helped us: First, yes - since your son will likely exceed $400 in self-employment income, he'll need to file a tax return and pay self-employment taxes (about 15.3% for Social Security and Medicare). This applies even though he's a minor and your dependent. He'll use Schedule C to report his business income and expenses. Keep detailed records of everything - income from each customer and all business expenses. Even small things add up: gas for the mower, oil, replacement parts, business-related mileage when you drive him to customers, etc. The good news is that with proper expense tracking, his taxable income will be lower than his gross earnings. And since he's likely under the standard deduction threshold for regular income tax, he'll probably only owe the self-employment tax portion. One tip: have him set aside about 15-20% of his earnings in a separate account for taxes. This way you're not scrambling to pay when filing time comes. It's also great practice for him to learn about business finances! Don't stress too much - this is actually a wonderful learning opportunity for him about entrepreneurship and taxes. The IRS has good resources for small business owners, and there are plenty of tax prep services that handle simple Schedule C situations like this.