Summer is almost here, and many young people will work while school is out to earn extra money. It might be babysitting, dog walking or something else. Keep in mind that if goods and services are exchanged for money, there may be tax implications. Even if you’re a dependent on your parents’ tax return, if you owe taxes, you must file your own return. If you have net earnings from self-employment of at least $400, you must file a tax return and generally owe self-employment tax. Parents can’t claim a dependent child’s self-employment on their own tax return. If you’re self-employed, keep accurate financial records, and if required, make estimated tax payments. Contact us for more information. © 2023
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Jun