Taking on a summer job is a rite of passage for many teens. It’s also a great way for kids to learn some financial responsibility while earning their own money. It even provides an opportunity for young adults to get acquainted with what it means to have to pay taxes.
When your teenager gets hired for a summer job, they’ll most likely have to complete a Form W-4 before they can start working. The purpose of the W-4 is to let the employer know how much the employee wants to have withheld for federal and state income taxes. Your teen can also use this form to claim an exemption from federal withholding if they don’t think they’ll earn more than the standard deduction limit. For tax year 2024, the standard deduction is $14,600.
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