Do minors get taxes taken out of their paycheck?
Yes – minors get taxes taken out of their paycheck like adults if they earn more than the standard deduction. For tax year 2025, the filing threshold for a working teen is $15,750 in wages or $1,350 in unearned income.
Most teens can claim Exempt on Form W-4 only if they had no federal income tax liability in the prior year and expect none in the current year. Check the Exempt box, complete only Steps 1(a), 1(b), and 5, and use a new W-4 each year.
This guide covers withholding for ages 14–18, filing requirements, W-4 exempt, self-employment tax, digital income, and the Custodial Roth IRA.
Key takeaways for 2025 (filled in 2026):
- Filing thresholds: $15,750 in wages or more than $1,350 in unearned income (interest, dividends).
- Self-employment rule: if net earnings from self-employment are $400 or more, a return and Schedule SE are generally required, regardless of age.
- For most teen wage jobs, a W-4 "Exempt" stops federal income tax, but Social Security and Medicare (7.65%) are still withheld – family-employment and some household-work exceptions aside.
- Refunds: if federal tax was withheld and the minor earned under $15,750, file to get it back.
- Roth IRA opportunity: for tax year 2025, a teen can contribute to a Roth IRA up to the lesser of $7,000 or their taxable compensation. In practice, minors often use a custodial account arrangement under state law, but the IRS limit is based on compensation.
Understanding the basics – do minors have to pay taxes?
Minors must pay taxes if their income crosses an IRS threshold. Age does not exempt anyone from federal income tax.
For tax year 2025, two thresholds apply.
- Earned income: $15,750 – wages, salaries, and tips from jobs.
- Unearned income: $1,350 – interest, dividends, and capital gains.
For tax year 2025, a dependent teen generally must file if unearned income is over $1,350, if earned income is over $15,750, or if gross income is more than the larger of $1,350 or earned income up to $15,300 plus $450. If a teen has both wages and investment income, use the Pub. 501 worksheet or the IRS Interactive Tax Assistant. Income below these thresholds still warrants filing if taxes were withheld, since that is the only way to claim a refund.
For the underlying mechanics, see our guide to the minimum income to file taxes.
The workings of withholding – what happens to a minor's paycheck?
Most paychecks have federal income tax, Social Security (6.2%), and Medicare (1.45%) withholding, but some jobs are exempt from FICA. Form W-4 only controls federal income tax withholding.
Federal and state tax withholding
The amount of federal income tax withheld depends on Form W-4. Most teens can claim Exempt to stop this withholding, but only if they had no federal income tax liability the prior year and expect none for the current year.
FICA (Social Security and Medicare) applies to most teen wage jobs. Exempt status on a W-4 cannot stop FICA, though some family-employment and household-work situations are exempt.
The kiddie tax
For tax year 2025, if a child has more than $2,700 of unearned income and meets the other Form 8615 conditions, the child's tax is figured under the kiddie-tax rules, which can apply the parent's rate to net unearned income. The $1,350 / $1,350 split is part of Form 8814, which is a separate election for a child's interest and dividend income.
The kiddie tax does not apply to wages from jobs – only investment income. Most working teens are not affected. For the underlying form, see Form 8615 for children with unearned income.
Income thresholds – when does a minor need to file a tax return?
The threshold depends on the type of income the minor has.
Earned income filing requirements
For tax year 2025, a minor must file if earned income exceeds $15,750. This matches the standard deduction for a dependent filer.
Below $15,750, filing is generally not required – unless taxes were withheld and the teen wants a refund.
Unearned income filing requirements
Minors with both earned and unearned income face more complex thresholds – the gross-income test uses the larger of $1,350 or earned income up to $15,300 plus $450. Use the dependent filing worksheet in Pub. 501 or Pub. 929, or the IRS Interactive Tax Assistant.
Why file even if not required
There are three good reasons to file when not required.
First, refund recovery: minors do get tax refunds if federal tax was withheld, but filing is the only way to recover it.
Second, the statute of limitations. Filing starts the usual 3-year assessment period. If no required return is filed, the IRS can assess the tax at any time.
Third, history-building: the return establishes a record with the IRS. Note that Social Security earnings history comes from wage reports on Form W-2, not from the income tax return itself. Use IRS Free File if income is under the threshold.
Filing requirements by age
How much a minor can make before filing taxes depends almost entirely on how many hours they work per week.
| Age | Typical income | W-4 strategy | Filing required? | FICA |
|---|---|---|---|---|
| 14–15 | $3,000–8,000 | Claim EXEMPT | No (unless self-employed $400+) | Always withheld (7.65%) |
| 16–17 | $6,000–15,000 | Check if it will exceed $15,750 | Only if income > $15,750 | Always withheld (7.65%) |
| 18 | $10,000–20,000+ | Usually withhold if full-time | Likely yes if working full-time | Always withheld (7.65%) |
Notes:
- Tax year 2025 thresholds: $15,750 earned, $1,350 unearned.
- FICA (7.65% total) applies to most teen wage jobs at all ages regardless of W-4 exempt status; exceptions exist for certain family-employment and household-work arrangements.
- Net self-employment earnings of $400 or more trigger filing at any age.
Form W-4 and claiming exempt status for minors
Minors can claim exemption from federal income tax withholding on Form W-4 if they expect to owe no federal tax and had no tax liability the prior year.
To qualify for 2025 withholding: expect total income under $15,750, and have had $0 federal tax liability in 2024.
On the Form W-4, claim exempt status by checking the Exempt from withholding box and completing only Steps 1(a), 1(b), and 5. For 2026 withholding, exemption is allowed only if the worker had no federal income tax liability in 2025 and expects none in 2026.
Social Security and Medicare are still withheld for most teen employees even when "Exempt" is claimed.
Who qualifies for exempt status
To claim exempt from federal income tax withholding, the worker must meet both IRS conditions:
- Prior year: no federal income tax liability.
- Current year: expect to owe no federal income tax.
Exempt status only stops federal income tax withholding. FICA applies in most cases – though some family-employment arrangements are an exception – and state income tax follows state rules.
How to claim an exemption on Form W-4
To claim exempt, follow these five steps:
- Get the W-4 from the employer when starting a new job.
- Complete Steps 1(a), 1(b), and 5.
- Check the Exempt from withholding box.
- Sign and date the form.
- Submit to the employer.
To keep exempt status, give your employer a new Form W-4 by February 15 each year, or the next business day if February 15 falls on a weekend or federal holiday. For 2026, that deadline is February 17, 2026.
For the full breakdown of the form, see our Form W-4 guide.
When NOT to claim exempt
Do not claim exempt in any of these situations.
- Expect to earn more than $15,750 for tax year 2025 (high hourly rate, full-time hours, or multiple jobs).
- Have unearned income creating tax liability.
- Prefer steady withholding to avoid owing at year-end.
If you are not sure what to withhold, run the numbers through the IRS Tax Withholding Estimator or have a TFX CPA review your W-4 and estimated payments before the next paycheck.
Special cases – self-employment and odd jobs
Minors do pay self-employment tax once net earnings reach $400. The rule kicks in at any age and at any income level.
Self-employment tax threshold
The self-employment tax is 15.3% on net earnings: 12.4% Social Security plus 2.9% Medicare. Three rules govern it.
- $400 threshold: if net earnings from self-employment are $400 or more, a return and Schedule SE are generally required, regardless of age.
- Separate from income tax: SE tax applies even if income tax is $0 (because total income is under $15,750).
- Both can apply: if total income exceeds $15,750, the minor owes both SE tax and income tax.
Estimated tax payments
If a teen expects to owe at least $1,000 after withholding and credits, estimated tax may be required. For calendar-year taxpayers, the usual due dates are April 15, June 15, September 15, and January 15, but the date moves if it falls on a weekend or holiday.
Most taxpayers avoid a penalty if they owe less than $1,000 after withholding and credits, or if they meet the 90% / 100% safe-harbor rules. Keep records of all income and expenses throughout the year.
Digital income – social media, TikTok, and Etsy
"Kidfluencers" and teen entrepreneurs are squarely on the IRS radar. The $400 self-employment threshold applies to platform income just as it does to lawn-mowing or babysitting.
A minor making $400 or more from YouTube ad revenue, the TikTok Creator Fund, brand sponsorships, Twitch subscriptions, Etsy sales, Shopify storefronts, or dropshipping is self-employed. They must file a return and pay the 15.3% SE tax – even if total income is far below the $15,750 standard deduction.
The same applies to 1099-K payouts from PayPal, Venmo (business accounts), Cash App, and Stripe. Brand-gifted products with measurable cash value also count as income. The IRS Self-Employed Individuals Tax Center covers the underlying rules for how platform income is classified and taxed.
Tax guidance by age – 14 to 18-year-olds
Filing requirements are the same across ages, but typical earnings differ, which changes the W-4 strategy.
Ages 14–15: limited-income workers
Typical scenario: first jobs, limited hours per week. Annual earnings usually $3,000–8,000, well below $15,750.
Strategy: claim "Exempt" on Form W-4 to avoid federal income tax withholding. If federal tax was withheld anyway, file a return to get a full refund. In most cases, FICA is withheld. If it was withheld in error, the employer should correct it; if that is not possible, the taxpayer may need to claim a refund with the IRS.
Filing is usually not required, but worth doing whenever taxes were withheld.
Ages 16–17: increased hours
Typical scenario: more hours during the school year, potentially full-time over summer. Annual earnings usually $6,000–15,000.
The key step is estimating whether income will exceed $15,750. If it will, set withholding. If it will not, "Exempt" is appropriate – but review mid-year if hours increase.
A return is required once income exceeds $15,750, or whenever the teen wants to claim a refund of withheld taxes.
Age 18: full-time potential
Typical scenario: full-time work (40 hours/week), gap year, or post-graduation job. Annual earnings can easily exceed $15,750.
Strategy: do not claim "Exempt" when working full-time. Calculate the tax liability and set proper W-4 withholding.
Filing is likely required once income crosses $15,750.
When a minor needs to file a tax return
Two distinct situations trigger a return: a refund recovery and a parental election on unearned income.
When to file for a refund
File a return whenever federal income tax was withheld – even when not otherwise required. This is how working minors do get their taxes back; without filing, the withheld federal tax stays with the IRS.
Check the final paystub for federal income tax withheld (not FICA – that cannot be refunded). For returns filed in 2026, IRS Free File Guided Tax is available when adjusted gross income is $89,000 or less.
The IRS issues most refunds in fewer than 21 days for e-filed returns with direct deposit, but some returns take longer – particularly paper returns.
Parents claiming child's income
Parents may elect to report a child's eligible interest and dividend income on their own return using Form 8814 only if the child meets all IRS conditions for that tax year. For TY2025, those conditions include having only eligible interest and dividend income, not filing a joint return, and having income within the Form 8814 limit. Parents should check the 2025 Form 8814 instructions before choosing this election.
Warning: Form 8814 is administratively simpler but may cost more in total tax. The child's eligible investment income is reported on the parents' return, which can affect the parents' tax calculation. Filing a separate return for the child may produce a lower bill.
Form 8814 applies only to investment income. Wages from a job must go on the child's own return.
The Roth IRA advantage for working minors
A teen with earned income can open a Roth IRA. For tax year 2025, contributions are limited to the lesser of $7,000 or their taxable compensation. In practice, minors often use a custodial account arrangement under state law, but the IRS limit is based on compensation.
Examples: a 15-year-old who earned $4,200 over the summer can contribute up to $4,200; a 17-year-old who earned $9,000 can contribute up to $7,000.
Contributions are made with after-tax dollars (which for most teens means $0 tax thanks to the standard deduction).
Roth IRA contributions are always tax-free to withdraw, but earnings are tax-free only on a qualified distribution, which generally means the account has been open at least five years and the owner is at least 59½, disabled, deceased, or using the first-home exception. A 16-year-old has roughly five decades of compounding ahead, which is what makes this account class so valuable.
Self-employment income from social media, gig work, or Etsy counts as earned income for Roth IRA purposes, as long as it is reported on the minor's return.
For long-term planning, see our guide to Social Security benefits as an American living abroad.
A working teen's tax withholding – a parent's guide
Parents should help with three things: completing Form W-4 accurately, reviewing pay stubs, and tracking income against the $15,750 threshold.
For the underlying return mechanics, our Form 1040 explained walks through the full return.
Helping with Form W-4
Review the W-4 together before the teen starts the job. Determine whether exempt status applies (will income stay under $15,750 for tax year 2025).
If exempt:
- Both IRS conditions must be met: no federal income tax liability in 2024, and none expected in tax year 2025.
- Check the Exempt from withholding box and complete only Steps 1(a), 1(b), and 5.
- A new W-4 must be submitted by February 17, 2026 to keep exempt status, since February 15 is a Sunday and February 16 is Washington's Birthday.
If not exempt:
- Complete Step 1 only. Leave Steps 2–4 blank for standard single withholding.
- Note that exempt status expires February 15 the following year and must be renewed annually.
- Keep a copy of the W-4 for records.
Paycheck review tips
Review the first paycheck together. Federal income tax withheld should match the W-4 – $0 if "Exempt" was claimed.
Check FICA: 6.2% Social Security and 1.45% Medicare; most teen wage jobs are subject to both. Track year-to-date earnings against $15,750. Keep all pay stubs for tax filing.
Parents should consider their own tax situation and consult a tax professional when needed.
A parent's guide to IRS administration
Understanding how to file taxes for a minor starts here: two administrative steps make IRS contact far easier when a minor files.
First, Third Party Designee. On Form 1040, check "Yes" in the Third Party Designee section and list a parent's name and PIN. Without it, the IRS will only speak to the minor.
Second, signing the return. When the child is too young to sign, the parent signs as: "By [Parent Signature], parent [or guardian] for minor child."
These two items resolve most of the friction families hit when a teen's return needs follow-up.
Conclusion
The most useful financial skill a working teen can pick up is knowing summer job tax rules cold – starting with the difference between gross pay (what the employer agreed to pay) and net pay (what actually lands in the account).
Most teens earning under $15,750 for tax year 2025 can claim "Exempt" on Form W-4 to avoid federal income tax withholding. Filing the return anyway is the only way to recover any tax that was withheld.
Self-employment income needs closer tracking, since $400 triggers filing and the 15.3% SE tax. Teaching paychecks, withholding, and filing early builds strong financial habits.
Taxes for Expats supports families with teen income, refunds, self-employment, and Custodial Roth IRA setup.
FAQ
For tax year 2025, a minor must file if earned income exceeds $15,750, unearned income exceeds $1,350, or self-employment income reaches $400. Below those thresholds, filing is still worthwhile to recover any federal tax that was withheld.
In most cases, yes. Social Security (6.2%) and Medicare (1.45%) total 7.65% and are withheld regardless of income. One notable exception: a child under 18 working for a parent's sole proprietorship or a parent-only partnership is not subject to FICA. W-4 exempt status does not stop FICA. If Social Security or Medicare tax was withheld in error, the employer should correct it; if that is not possible, the taxpayer may need to claim a refund with the IRS. "Exempt" only stops federal income tax withholding.
There is no minimum age. A 5-year-old child model or actor must file and pay taxes if income exceeds the tax year 2025 thresholds. Anyone earning income owes tax once they cross $15,750 earned or $1,350 unearned.
Yes, if they expect to earn less than $15,750 in tax year 2025 and had no tax liability the prior year. Check the Exempt from withholding box. Exempt status applies only to federal income tax, not FICA, and must be renewed annually.
Working minors do pay taxes once earned income exceeds $15,750 or unearned income exceeds $1,350 for tax year 2025. Even when not required, filing recovers withheld taxes. Self-employed teens must file at $400+ in net earnings.
For tax year 2025, the kiddie tax kicks in once a child has more than $2,700 of unearned income and meets the Form 8615 conditions – the parent's rate can then apply to the child's net unearned income. The $1,350 / $1,350 split belongs to Form 8814, a separate election that parents can make for a child's interest and dividend income. Wages from jobs are not subject to the kiddie tax.
Claim "Exempt" on Form W-4 if income will be under $15,750 and there was no tax liability last year. Check the Exempt from withholding box and submit the new W-4. This does not stop Social Security or Medicare withholding.
Yes. As long as the child provides less than half of their own financial support and meets the other IRS dependency tests, parents can still claim them as a dependent – even when the child earns over $15,750 and files their own return.
Generally, no. Earned income (wages) must be reported on the child's own return. Parents can elect to report a child's income on their own return only when the child has only unearned income (interest, dividends) below $13,500 for 2026, using Form 8814 – and that election usually costs more in total tax than filing a separate return for the child.
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