Tax advice for teen

[Anonymous]

My DD is a part-time nanny this summer. She is being paid by personal check by the family. She will make less than the minimum threshold for filing taxes. So does she need to do anything? Is she supposed to be paying Social Security tax or can she just not report anything? She made about $1,000 from a different non-nanny part-time job that did take taxes out, so she will need to file to get the minimal amount of federal and state taxes back. They took out Social Security and Medicare there.

[Anonymous]

Are you my babysitter's mom?

No SS taxes for domestic work under age 18.

My guess is she won't have any tax liability and will be below the filing threshold, but she'll want to file to get back the withholding.

Maybe you can convince her to put something in a Roth IRA? A "parent match" might be a nice gesture.

[Anonymous]

She is 18, and yes I'm her mom. She's still claimed by me as a dependent since she's in college. First she needs to help pay for college before delving into an IRA.

[Anonymous]

Anonymous wrote:She is 18, and yes I'm her mom. She's still claimed by me as a dependent since she's in college. First she needs to help pay for college before delving into an IRA.

Did she turn 18 this year? For FICA domestic worker purposes she is considered 18 for the entire year in which she turns 18.