Teenagers with summer jobs may not think they’re being paid enough to have tax obligations. But anyone with self-employed income over $400 (earned, for example, by babysitting or mowing lawns) is required to file an income tax return and pay self-employment tax. If a teen has a job through an employer who withholds payroll taxes, the filing threshold is higher: $15,000 for 2025. In these circumstances, teens usually won’t owe income tax when they file and may be eligible for a refund. A note for anyone earning tips this summer: Although President Trump has promised to make tips income tax-free, this isn’t yet the law. Tip-earners need to keep records and pay tax on tips until further notice.
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