Do teenagers pay taxes on side hustle income?
Sometimes. Net self-employment earnings of $400 or more trigger self-employment tax, and being fourteen does not change that threshold.
Young FoundersSometimes, and the number to know is $400.
Generally, if net earnings from self-employment reach $400 or more, self-employment tax applies and a Schedule SE gets filed. That threshold does not change because the person is fourteen. Age does not exempt anyone from self-employment tax.
Income tax filing is a separate question with different rules, and it depends on the total amount and the type of income. So the honest answer to whether your kid will actually owe anything is that it depends on the year and the numbers.
Net earnings means what is left after expenses, not what came in. A teen who collected $600 mowing lawns and spent $250 on gas, blades, and a trimmer line is closer to the line than the gross number suggests, which is one more reason to keep records.
Two things worth doing now, neither of which needs a professional.
Keep a record from the first dollar. Date, who paid, how much, and anything spent. A notes app is fine. Reconstructing a summer of cash payments in April is miserable, and it teaches your kid that records are a punishment instead of information.
Call a tax preparer when earnings get close to $400. Confirm the current year's figures with the IRS directly or with your preparer, because thresholds and rules do get updated.
More context: what your kid legally needs to start a business.
This is general information, not tax advice, and figures change. Verify against current IRS guidance.
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