Truth 22When a child has to file
A summer or part-time job is a great experience for a youngster. The young worker learns responsibility and pockets a bit of spending money to boot. But with those paychecks come possible tax consequences.
Basically, there is no age limit, high or low, that establishes whether you have to file. Age is a factor, but the primary determinants are the amount and type of income received. The IRS characterizes income in three ways:
Earned income, which comes from work, such as wages, salary, or tips. This type of income is reported on Form W-2, detailing the amount earned and any taxes that might have been ...