Family Tax Filing Responsibilities

25 October 2021
 Categories: Insurance, Blog


Your teenager may have recently gotten a job and now you are wondering what their responsibility is, concerning the filing of their taxes. Use the following guidelines to aid with reporting your and your loved one's taxes.

Filing Basics

A single dependent who is a minor and who can be claimed on a parent or guardian's tax return may not necessarily need to file an individual return. Income guidelines are furnished through the IRS. These guidelines will provide the income brackets that will make your child exempt from filing a return.

If you plan on claiming your teenager, you can do so on your individual return. Adding a dependent may increase your refund amount. You may also be obligated to report health insurance claims. Providing complete information will minimize tax return delays. 

Some Considerations

If your teenager works full-time and does not reside at your home, they will be responsible for filing a return. The amount of money that they overpaid or underpaid will be calculated when their tax return is filled out. If your loved one has federal, state, and social security withholdings, they may be able to receive a refund.

If taxes were not withheld, your teenager will be responsible for the amount that was underpaid. Some employers may use independent contractors instead of hiring permanent employees. If your family member is classified as an independent contractor and receives cash payments for their services, they will be responsible for paying taxes on the wages that they earned.

To better prepare your teen, help them gather up the tax documents that they will need when it is time to file. Proof of health insurance that they receive through their place of employment, pay stubs or tax documents that are furnished through an employer, and identification will be necessary when filing. You can either fill out income taxes through an online tax preparer or you can seek an accountant or a private tax preparer who serves the public.

If you and your teen will be using the services provided through a local tax preparer, bring along any tax documents that will be necessary to file a return. A tax preparer will discuss the payment options for their services and will outline how long it may take to receive a tax return. If you or your teenager owes taxes, you will each be able to pay the amount upfront or pay it in installments.

For more information on how to prepare your teenager for the tax season, contact a company like Right Choice Insurance and Taxes Inc.