Up to date for tax yr 2025.

Are you submitting your taxes for the primary time this yr? Submitting an earnings tax return could sound daunting should you’ve by no means finished it earlier than. However the excellent news is that the majority teen tax returns are easy to do — you simply have to familiarize your self with some tax fundamentals.

Is a teen required to file taxes?

As a taxpayer, you don’t have to file a tax return should you earned lower than the usual deduction, which is $15,750 for a single filer in 2025. Nonetheless, if the federal government owes you a tax refund, it would be best to file a tax return to get that cash again.

If you happen to earned greater than $400 by working a job similar to babysitting or doing yard work in your neighborhood, like mowing lawns or raking leaves, the IRS considers you to be self-employed, no matter your age. Due to these submitting necessities, you’ll need to file a tax return to report that taxable earnings.

One other exception to the usual deduction restrict is should you earned greater than $1,350 in unearned earnings in 2025 (sometimes from investments or curiosity somewhat than a job). If, for instance, you invested in crypto or traded shares as a minor, it’s possible you’ll be required to file a tax return even should you made lower than the usual deduction.

What’s the tax charge for a teen?

The speed you might be taxed will depend on how a lot cash you earn all year long. Your annual earnings determines which earnings tax bracket(s) you might be in. Listed below are the tax brackets for 2025:

For instance, let’s say you earned $15,000 as a single filer in 2025. Utilizing the 2025 chart above, you may see that the primary $11,925 you made can be taxed at 10%, and the remaining $3,075 can be taxed at 12%.

What sorts of taxes do youngsters must pay?

As an worker, you’ll have to pay federal earnings tax. If you happen to reside in a state with earnings tax, you’ll have to pay state earnings taxes as effectively, which implies submitting a state tax return along with a federal tax return.

Fortunately, should you e-file with TaxAct^®, we will pull data out of your federal return to partially fill out your state return, making the method faster and simpler than submitting each returns from scratch. Relying on the place you reside, you possibly can owe native taxes to your metropolis or county as effectively.

You’ll additionally have to pay FICA tax, generally known as the payroll tax. This contains your Social Safety and Medicare taxes. If you’re a W-2 worker, your employer pays for half of your FICA tax, making your Social Safety tax charge 6.2% and your Medicare tax charge 1.45%.

What’s the distinction between internet earnings and gross earnings?

If you happen to’re an worker, the federal government robotically takes the taxes you owe out of every paycheck. They name this withholding. Because of withholding, your take-home pay is the amount of cash you earn minus taxes — additionally known as your internet earnings. The quantity you earned earlier than taxes have been taken out is named your gross earnings.

• Gross earnings: Your whole wage earlier than taxes are withdrawn.
• Web earnings: Your take-home pay minus taxes

How do I file my taxes for the primary time?

To begin submitting your first tax return, you’re going to wish the next data:

• Your full authorized identify and birthday.
• Your tax identification quantity (TIN) – That is sometimes your Social Safety quantity.
• Your tax submitting standing – Probably single, except you might be married. If you happen to’re uncertain about you’re submitting standing, our tax submitting software program might help you resolve which possibility is finest for you.
• Your Kind W-2 out of your employer should you’re an worker.
• Any 1099 types reporting self-employed earnings.
• Your dependency standing (we’ll go over this in a second).
• A free TaxAct account should you’re submitting with us.

What are some tax advantages for teenagers?

As we stated earlier than, submitting a tax return may imply getting a tax refund of any extra taxes that have been withheld out of your paycheck. So even should you made lower than the usual deduction, it’s nonetheless a good suggestion to file.

Many tax breaks rely in your dependency standing. If you happen to depend on your dad and mom or guardian for greater than half of your monetary assist, you possibly can be thought of a dependent in case you are beneath age 19 or beneath age 24 in case you are a full-time pupil. If you happen to could be claimed as a depending on another person’s tax return, sure tax credit you would possibly qualify for may as a substitute be handed on to whoever is claiming you as a dependent.

One potential tax break for teen college students is the coed mortgage curiosity deduction. If you happen to took out pupil loans for your self, you possibly can take a deduction for the curiosity you paid on these mortgage(s) — as much as $2,500 per yr. You possibly can take this deduction even should you don’t itemize your deductions.

At what age can a teen declare a pupil tax credit score?

If you’re an undergraduate pupil at a university or college, you may declare the American Alternative Tax Credit score (AOTC) or Lifetime Studying Credit score (LLC), as long as you might be paying in your education and your dad and mom can’t declare you as a dependent. The AOTC is a credit score obtainable for 4 years to undergraduate college students enrolled at the very least half-time in an undergraduate program. The LLC is obtainable for anybody taking increased training lessons enrolled in at the very least one course.

You possibly can’t declare each of those credit on the identical tax return. If you happen to qualify for each, it’s typically extra helpful to say the AOTC — this tax credit score covers extra certified bills and is partially refundable, not like the LLC. Each tax credit can be found to whoever pays for the education, pupil or father or mother, and college students can’t declare these credit if they’re dependents.

What are the results of not submitting taxes?

Not submitting your taxes can imply lacking out on a tax refund at finest and dealing with failure to pay penalties at worst. Even should you don’t technically have to file (as an example, you made lower than the usual deduction), it’s a good suggestion to take action anyway to be sure you aren’t leaving any cash on the desk.

Particular person tax returns are sometimes due by April 15 (or the following enterprise day, if the fifteenth falls on a weekend or vacation). Remember to file by the deadline to keep away from a delayed refund or any potential failure to pay penalties should you owe taxes.

The underside line

Submitting taxes for the primary time doesn’t have to be a demanding expertise. With some primary information, a tax preparation guidelines, and a step-by-step tax prep information for first-time tax filers like TaxAct at your fingertips, you’ll be able to file with confidence this tax season.

This text is for informational functions solely and never authorized or monetary recommendation.

All TaxAct provides, services and products are topic to relevant phrases and situations.