As a minor, am I required to pay taxes?

Hey everyone, this is my first year working as a 16-year-old, and I was wondering if I’ll need to pay taxes when the time comes. I make less than $12,000 a year. I also have another question: my parents are setting up a UTMA for me, and I’m curious if it will be taxed. I plan to keep the UTMA as a long-term investment and won’t be using any of the money. If it is taxable, would it count toward my parents’ annual income? I’m asking because we receive government assistance as a low-income family, and I don’t want my decision to invest in the future to negatively impact them. Any advice would be appreciated! Thanks.

6 Likes

You pay the same taxes on earned income whether or not you are a minor.

In your state, you pay the same amount in taxes as a thirty-year-old who makes the same amount of money.

According to your description, you would be subject to FICA tax and probably state income tax but not federal income tax.

5 Likes

My manager wanted to know if I applied for a 1099 or a W2, so I asked her this question. I didn’t know what that meant, but every pay cheque doesn’t include taxes with it. I’m not sure whether that helps, but I would really appreciate some assistance.

4 Likes

Are there no FICA taxes deducted from your salary? Do they pay you 100.00 if you make 100.00? :thinking: :thinking: :thinking:

3 Likes

Yea i suppose so… My pay would be $120 if I worked 10 hours and earned $12 per hour. I was a little confused because they withheld additional taxes and fica from me at my previous employment.

2 Likes

It seems as though they are paying you in accordance with a contract they have with a business. What sort of labour is that?

1 Like

That’s probably because it’s my boss’s first time managing a business, even if I’m instructing right after school.