Teens and Taxes HS-PF 1.2 Review

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True or False: A dependent youth can earn up to $12,400 and not have to file a tax return.

True

1. Stella is 16 years old and she earned $3,500 in cash babysitting her neighbor’s son. Does she need to file a tax return? Why or why not?

No. Babysitters are considered "household employees" so she is not required to pay taxes on that income.

Debbie is 18 years old. She earned $3,500 this year at a local ice cream shop. Does she need to file a tax return? Why or why not?

No. She did not meet the $12,400 threshold.

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