Do teens have to pay taxes?
Most teens earn under the threshold — but you might still want to file. Here's why.
Whether you owe federal income tax depends on how much you earn AND what kind of income it is. There are two flavors at your age: W-2 (a real job) and 1099 / cash (side hustle).
~$16,100
2026 standard deduction (earned income, dependents)
If your W-2 wages are under this, you owe $0 federal income tax. But FICA (7.65%) still gets withheld.
When teens DO owe taxes
- •If you earn over the standard deduction from a W-2 job.
- •If you earn $400+ from self-employment (lawn care, tutoring, etc.) — you owe self-employment tax.
- •If you have unearned income (interest, dividends) over ~$1,350 — special 'kiddie tax' rules.
If your W-2 had federal tax withheld but you owe $0, FILE — that withheld money is your refund. IRS Free File is free, takes 30 minutes.
Real life: meet Sam's summer job refund
Sam (17) earned $4,200 at a summer pool job. The employer withheld $310 federal tax. Sam owes $0 because $4,200 is under the standard deduction. By filing IRS Free File, Sam gets every penny of that $310 back.
Earned $4,200 · Owes $0 · Refund $310
Takeaway
Teens with W-2 jobs usually owe nothing — but file to get any withheld federal tax back. Side-hustle income over $400 needs reported.
Sam earned $4,200 from a W-2 job and had $310 federal tax withheld. Should Sam file?
Takeaway: Filing a tax return is a free way to recover any federal tax that was withheld from a low-income summer job.
Try together: Walk through IRS Free File together using sample W-2 numbers. The full process takes under 30 minutes and gets demystified for life.