Taking a summer job is a rite of passage for kids and an excellent way for them to learn financial responsibility while earning and spending their own money.
TAX WITHHOLDING
Generally, a child working a W-2 job, earning less than the 2025 standard deduction amount of $15,000, is considered a dependent and won’t need to file a tax return.
However, it may be a good idea to file if federal income tax was withheld, because the child may be entitled to a refund.
BRANCHING OUT
When minors start doing things like baby-sitting or lawn care, they are technically self-employed. In this case, generally, if their net earnings (gross income less all eligible business expenses) exceed $400, they will need to file a tax return, due to Social Security and Medicare tax obligations. Be sure your child keeps track of their expenses for things like mileage and equipment purchases.
Additionally, minors must file a tax return if their gross self-employed earnings exceed the $15,000 standard deduction.
When your children start earning their own money, help them learn about budgeting and saving. Distinguishing between wants and needs will help them create a realistic budget while saving money.