Summer's here. That means that many teenagers will be looking for a seasonal job.
And those jobs mean that the young workers also will have some tax considerations.
But when it comes to young workers, there are some special rules.
Things like being a dependent, the amount a kid earns, how the young worker makes the money (as wages or via self-employment) all come into play and I examine them in my story Teen jobs and tax issues.
Do you have a potential young worker? Are you helping your teenager find a summer job or start his or her own enterprise this summer?
How are things going?
Tough times for job-seeking teens: The New York Times reported this week that in the current economy, the job outlook for teenagers has worsened.
Back in my day (I didn't mean for that to make me sound so old, but ... c'est la time marching on), I enjoyed my annual three-month journey into the real world. Of course, I lived in a small town where folks helped each other, and their kids, out when it came to seasonal employment.
In addition to making me feel temporarily grown up, my summer jobs helped me stash some cash to help pay for some college costs. There also was the financial opportunity to pick up an occasional new LP album. (Yes, vinyl; I guess "back in my day" is the appropriate phrase!)
I must admit, however, that back then I didn't think about potential taxes. My ignorance all those years ago might have been tax bliss, but an older and wiser me suggests you check out the possible tax ramifications a teen worker faces.
And if an employer does take payroll taxes out of your (or your son's or daughter's) paycheck, those tax withholdings in most cases can be collected by filing a 2010 return next year.
- 3 requirements to deduct job search costs
- Jobs, no jobs and taxes
- Unemployment's terrible tax surprise
- Tax concerns of the unemployed
- Writing off job-related moving costs
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