How Much Tax is Taken out of a Minor's Paycheck?

How Much Tax is Taken out of a Minor's Paycheck?
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October 29, 2023
5 min read
October 29, 2023
6 min read

The tax law at the Federal level is applied equally to both children and adults. Taxes are due when income is earned. This is reflected as deductions in the paycheck.  But, how much tax is taken out of a minor’s paycheck? That's a good question and the answer is not always so cut and dry. The amount of tax taken out of a minor's pay depends on how much money they make and whether or not they are required to file taxes.

Once a child starts making money, they are liable to pay taxes. This article gives a complete look at what taxes mean for young people. You will learn about the timing of tax withholding and get tips on how to lower your tax bill.

Understanding the Kiddie Tax

If a person is under 18 or a full-time student between the ages of 19 and 24, and their investment and earned income are more than the yearly level set by the government, they will have to pay the "kiddie tax."

Under the kiddie tax law, all income over a certain amount is taxed at the parent's marginal income tax rate instead of the child's rate.

How Much Tax is Taken out of a Minor's Paycheck

How Much Tax Will a Teen Pay?

Teenagers must pay taxes just like adults if they make more than a certain amount. It's essential for teens and their parents to know the rules that apply to them and how to pay taxes on the different ways teens can make money.

The amount of taxes a teen has to pay will depend on their income level and tax bracket. Some types of income, like self-employment or capital gains, pay tax in a different way or at a different rate than other types. For regular income, like wages, the individuals receive standard tax rates. And these rates increase every year to keep up with inflation.

How Much Tax is Taken Out of a Minor's Paycheck?

The federal tax law does not treat teens and young adults any differently than adults. As soon as they start earning their pay, they receive tax deductions. The money they make and how they file their taxes determine how much tax the authorities deduct from a minor's paycheck.

Example Calculation

Using the example to calculate payroll tax - a weekly wage of $1,600, a minor gets a weekly deduction of $115.75 (7.65% of $1,600) 

How Much Taxes Are Taken Out of a 16-Year-Old's Paycheck?

If a 16-year-old earns more than $400 as a sole proprietor, they must file a tax return and pay 15.3 percent in self-employment taxes to cover their SSN and medical payments.

Also, they pay 10% if they make at least $120 a month and work for an employer who doesn't have to pay certain taxes. This employer could be a church or other religious group.

How Much Taxes Are Taken Out of an 18-Year-Old's Paycheck?

So, how much do 18-year-olds get taxed on their paychecks? There is an explanation. An 18-year-old in 2023 who makes more than $1,200 in dividends and interest will have to pay taxes at the rates for trusts and estates. The parents pay the tax once it is above $2500.

How Much Taxes Are Taken Out of My Paycheck If I Claim 0 Income?

Another good question is how much tax is taken out of a minor’s paycheck if they claim no income or profit? The number of exemptions you claim on Line 5 of the tax form will determine the amount of tax withheld.

How Minors Pay Taxes on Employment Income

How Minors Pay Taxes on Employment Income

You pay taxes on your earnings, wages, tips, and other forms of work income.

The tax rate on income from a job is the same as the tax rate on income from other sources. Tax rates will stay the same. Most of the time, an employer has to take taxes out of an employee's pay.

A minor pays tax on the total amount of taxes they owe when they file a tax return. If they end up paying more tax than they should, they'll get a tax refund at the end of the year. You can determine how much you receive as a tax refund by using a minor's paycheck calculator.

When a Minor Has Capital Gains

As a minor with capital gains, you're still subject to taxation. However, the difference is what deductions are made from a paycheck. The minor's taxes apply to unearned income. Capital gain is one of them.

Your child doesn't have to pay taxes on capital gains and investment profits until they make $1300. Your child pays tax on the first $1,300 of unearned income, and the parent pays the tax on anything over $2500.

At What Income Does a Minor Have to File an Income Tax Return?

As a minor, one thing you should always have at the back of your mind is estimating how much tax must come from your paycheck. If a minor makes less than $10,000 a year, they don't have to pay taxes. They can apply for a tax refund if they want to get their money back. A child should file a tax return if they had "unearned income" of $1,200 or more before. This includes shares and interests.

Earned Income

If a child's income exceeds the standard wage, the child or minor must file a tax return. Last year, the standard deduction was about $1,200 for earned income above $500.

Unearned Income

It's important to remember that the IRS also has a threshold for taxing unearned income, which includes dividends and interest. If your child's income exceeds the threshold for the year, they must file a tax return. If their income is less than the threshold, they don't have to pay tax.


Can a minor file taxes if their parents claim them as a dependent?

If a minor's income exceeds the standard deduction amount set by the federal government, the minor must file a tax return. This applies to dependents.

How much does a teenager typically get back in a tax refund?

Since the IRS hasn't shared information about taxes paid by teenagers or additional refunds for a long time, there is no "average" tax refund for any specific age gap.

How much tax is taken out of a $300 paycheck?

The 15% tax bracket is for people who make between $0 and $50,000 a year. So, if you made $300, you would probably owe about $45.00 in federal taxes.

How to fill out form W-4 for minors?

Form W-4 is easy to fill out for young people with only one job and no other sources of income. There are clear instructions on the form. They should fill out the tax calculation form on the IRS website and submit it.

How to handle tax withholding for children on the payroll?

If you want to pay a minor, they must fill out a W-4 form when they start working. The child’s information on the form will help you figure out how much federal income tax to pay and how to calculate child support on a paystub. If the child can't complete the W4 form independently, you may need to help them complete it.

Final Thoughts on Tax Filing of a Minor’s Check

The value anyone pays as tax depends on how much they earn and the circumstances under which they earn it. This is a rule that doesn't exempt minors and children who earn money by any means.

As always, it is best to call the tax office or send an email inquiry to ask questions if you are not sure about paying your taxes. Asking questions is essential because tax laws in different countries are different. For an authentic pay stub, kindly check our error-free check stub maker