When a 16-year-old must file a tax return
Your 16-year-old has to file a tax return if they earned enough money in the year. The threshold depends on whether the income is from a job (called earned income) or from investments, interest, or other sources (unearned income).
For 2024, a teenager with only earned income from a job must file if they made more than $14,600 for the year. If they have unearned income—like interest from a savings account or dividends—the threshold is $1,300. If they have both types of income, the rule is more complex, and you should check the IRS worksheet or speak with a tax professional.
Even if your teenager earned less than these amounts, filing a return may still make sense. If their employer withheld taxes from their paychecks, they may be owed a refund. Filing is the only way to get that money back.
Key Takeaways
- A 16-year-old with only job income must file if they earned more than $14,600 in 2024; the threshold is $1,300 for unearned income like interest.
- Even if your teenager earned less than the filing threshold, filing may return withheld taxes as a refund.
- You can claim your teenager as a dependent on your own return only if they meet IRS rules—earning under a certain amount is one of them.
- A W-2 form from an employer or a 1099 form from other income sources tells you what was earned and withheld.
- The IRS Free File program offers free tax software for households under a certain income level, including those filing for a teenager.
How to know what your teenager earned
Start by gathering income documents. If your teenager worked a job, their employer will send a W-2 form by January 31st. This form shows gross wages (before taxes) and how much was withheld for federal income tax, Social Security, and Medicare.
If your teenager earned money from self-employment—babysitting, lawn care, freelance work—they may receive a 1099-NEC or 1099-MISC form if the payer was a business and paid them $600 or more. Even without a form, your teenager should report all income they received.
For unearned income, look for 1099 forms from banks (1099-INT for interest) or investment accounts (1099-DIV for dividends). Add up all income from all sources to see whether filing is required.
Dependent status and your tax return
You can claim your teenager as a dependent on your own tax return only if they meet several IRS rules. One rule is that they cannot have too much income. For 2024, your dependent cannot have more than $4,700 in earned income, or $1,300 in unearned income, or a combination that the IRS calculates using a worksheet.
If your teenager earned more than these amounts, you cannot claim them as a dependent, even if they still live with you and you pay for their support. This is separate from whether they have to file their own return.
If your teenager does not meet the dependent rules—because they earned too much or for another reason—they file their own return and you do not claim them. If they do meet the rules, they file their own return and you claim them on yours.
Filing options and free tax software
The IRS Free File program offers free tax software to households under a certain income limit. For 2024, most households earning under $79,000 can use Free File. Your teenager can file through this program even if you do not use it yourself.
You can also use commercial tax software that charges a fee, or work with a tax professional. If your teenager's return is straightforward—one W-2, no other income, no deductions beyond the standard deduction—software is usually straightforward.
If your teenager is self-employed or has complex income, a tax professional can may support the return is correct and may find deductions you would miss. The cost of professional help is often worth it to avoid errors.
What happens if you do not file
If your teenager owed taxes and did not file, the IRS will eventually send a notice. The longer the delay, the more interest and penalties accumulate. If your teenager is owed a refund but does not file, that refund is lost after three years.
Filing on time protects your teenager from penalties and ensures they get any refund due. If you realize a return should have been filed in a prior year, you can still file it—the IRS accepts late returns, though refunds are limited to three years back.
Self-employment income and estimated taxes
If your teenager is self-employed—running a small business, freelancing, or doing gig work—they may owe self-employment tax in addition to income tax. Self-employment tax covers Social Security and Medicare and applies if net earnings are $400 or more.
Self-employed teenagers also deduct business expenses before calculating tax. Expenses might include supplies, equipment, or a portion of internet or phone bills if used for the business. Keeping receipts and a straightforward record of income and expenses makes filing much easier.
If your teenager will owe a large amount in taxes, they may need to make quarterly estimated tax payments to the IRS. A tax professional can advise whether this applies to your teenager's situation.
Frequently Asked Questions
Can my 16-year-old claim themselves as a dependent instead of me claiming them?
No. Dependent status is determined by IRS rules, not by who claims it. If your teenager meets the rules—relationship, age, residency, citizenship, income, and support—you claim them. Your teenager cannot choose to claim themselves instead.
What if my teenager earned money but no employer sent a W-2 or 1099?
They still have to report the income on their tax return. The IRS knows about reported income from W-2s and 1099s, but they also expect people to report income that was not reported to them. Keep records of what was earned and from whom.
Does my teenager need a Social Security number to file?
Yes. Your teenager needs a valid Social Security number or Individual Taxpayer Identification Number (ITIN) to file. If they do not have one, you can explore through the Social Security Administration before filing the tax return.
What if my teenager had taxes withheld but earned less than the filing threshold?
They should file to get a refund of the withheld taxes. Even though they did not have to file, filing returns the money they overpaid. This is one of the most common reasons teenagers file returns.
Can I file my teenager's return for them, or do they have to sign it?
You can prepare the return, but your teenager must sign it (or e-sign it electronically). If they are under 18, you may need to sign as well, depending on the software or tax professional you use. Check the requirements of your chosen filing method.