Should my 18 year old claim 0 or 1

If your teenager is working a summer job, it’s important to know which tax filings may be required and the implications of your child’s income.

What is the amount of the self-employment tax (seca) and how does it compare to fica taxes?

Children claimed as dependents generally do not need to file a tax return unless they earned more than the standard deduction. However, tax rules can vary depending on their type of employment some of which we will cover below.

Third Party Employment

If your child has a summer job at a business that is not family owned, they should fill out a Form W-4.

If they did not have federal tax liability for the previous year and expect to have no federal tax liability for the current year, they can claim an exemption from federal income tax withholdings on the W-4.  Unless your child expects to earn more than $12,950, or the standard deduction for 2022, they can claim exemption and should not have to file a tax return.

If your child does not claim exemption and their employer withholds federal income taxes, filing the return could result in a withholding refund. It’s important to note that even if a child is exempt from federal inco