For 17-year-olds in 2025, tax filing depends on income, not age. Generally, a teen must file if they earn over $ 15 , 750 $ 1 5 , 7 5 0 in wages (or $ 1 , 350 $ 1 , 3 5 0 in unearned income) and are claimed as a dependent. Taxes are withheld from paychecks, and filing a return is necessary to claim a refund of these withholdings.
Yes, your 17-year-old might need to file taxes if their income (earned from a job, unearned like interest/dividends, or self-employment) exceeds certain IRS thresholds, even as a dependent; they should file if they had federal income tax withheld to get a refund, regardless of income, or if they made over $400 in self-employment income. Age isn't the factor, income is, so check the specific 2024 income limits (around $14,600 earned, $1,300 unearned).
What kinds of taxes do teenagers have to pay? As an employee, you'll need to pay federal income tax. If you live in a state with income tax, you'll need to pay state income taxes as well, which means filing a state tax return in addition to a federal tax return.
When your teenager works for US employers, they do take taxes out of minors' paychecks: FICA taxes: 7.65% (Social Security 6.2% + Medicare 1.45%) – mandatory for all workers, including under 18. Federal income tax: Based on Form W-4 completion. These are automatically withheld regardless of where your family lives.
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
No, if your child turned 17 in 2025, you generally won't get the main Child Tax Credit (CTC) for them because the child must be under 17 at the end of the tax year (December 31st) to qualify. Turning 17, even late in the year, makes them ineligible for the full CTC, though you might qualify for the smaller Credit for Other Dependents (ODC) if they meet other dependency tests.
You generally cannot claim your daughter as a dependent if she made over $5,000 (specifically, over the 2024 gross income limit of $5,050 or 2025 limit of $5,200) as a Qualifying Relative, but she might still be a Qualifying Child if she's under 19 (or 24 as a student), lived with you, and didn't provide over half her own support, as the income limit doesn't apply to Qualifying Children. The key is whether she's a Qualifying Child (no income limit) or a Qualifying Relative (income limit applies).
A minor who earns less than $15,750 in 2025 will usually not owe taxes but may choose to file a return to receive a refund of tax withheld from their earnings. A child who earns $1,350 or more (tax year 2025) in "unearned income,” such as dividends or interest, needs to file a tax return.
Income tax can apply to money your child receives, such as bank account interest or dividends from shares. For tax purposes, a “minor” is an individual under 18 years of age at 30 June of the income year. Special tax rules for minors apply until they no longer meet this definition.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
If your child is under the age of 19 (or under the age of 24 if a full-time student), you may elect to report your child's investment income on your return to avoid your child having to file a separate return. However, if your child's unearned income exceeds $13,000, they must file their own tax return.
You can no longer claim the main Child Tax Credit (CTC) for a child who is age 17 or older by the end of the tax year; however, they might qualify for the smaller Credit for Other Dependents (up to $500) if they meet other criteria, and you can still claim them as a dependent for other purposes (like under age 19, or under 24 if a student). The age limit for the CTC is strictly under 17 at year-end, so a child turning 17 in December ages out for the main credit for that entire year, but can potentially be claimed for the $500 credit.
There is no age restriction to file income tax returns. Minors below the age of 18 years who have an income in the form of earned income or unearned income or do certain transactions (subject to certain conditions) have to pay taxes.
A minor's W-2 income must be reported on their own return, not on a parent's. If a minor has over $1,300 in unearned income, the IRS requires the minor to file a tax return. Parents can report a child's unearned income on their own return, but it may put them in a higher tax bracket.
You lose the Child Tax Credit (CTC) at age 17 because federal tax law specifies the credit applies to children under age 17 at the end of the tax year; once a child turns 17, they "age out" of this specific credit, though they might qualify for the smaller Credit for Other Dependents ($500) or remain a standard dependent for other tax benefits. This age cutoff isn't based on student status or living situation (which allow them to remain dependents), but is a strict IRS rule for the CTC.
On your first day of work, even as a teenager, your employer may ask you to fill out 2020 Form W-4. This form, the Employee's Withholding Certificate, is used by employers to determine the amount of tax that will be withheld from your paycheck.
Increased the credit from up to $2,000 per qualifying child in 2020 to up to $3,600 for each qualifying child under age 6. Increased the credit from up to $2,000 per qualifying child in 2020 to up to $3,000 for each qualifying child ages 6 to 16. Makes 17-year-olds eligible for up to $3,000 in credit.
The American Rescue Plan Act of 2021 temporarily expanded the child tax credit for the 2021 tax year to $3,600 per child under age 6 and $3,000 per child up to age 17.