Teenagers & Taxes: Does Your State Require Your Little one to Pay Revenue Tax?


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As tax season is upon us, mother and father could also be dealing with many new tax conditions. And in case your teen had earned revenue from a gig or part-time job or unearned revenue from investments, they may should pay state revenue tax in addition to federal taxes.

See: Teenagers & Taxes: What Paperwork Does Your Little one Have to File Taxes?
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State tax for particular person taxpayers can also be due on Tax Day, which falls on April 18 in 2022 as a consequence of a federal vacation on April 15, 2022.

Eight U.S. states don’t gather state revenue tax. So, in case you reside in one in all these states, your little one — identical to any grownup — wouldn’t have any state revenue tax burden. These states are:

  • Alaska
  • Wyoming
  • Florida
  • South Dakota
  • Texas
  • Nevada
  • Washington
  • Tennessee

New Hampshire solely taxes residents on curiosity and dividends — not earned revenue.

In different states, in case your teen is topic to federal revenue taxes — which they might want to in the event that they earned greater than $12,550 — they could should file a state tax return, as nicely. All of it depends upon whether or not their wage exceeds the usual deduction for his or her state. States with no customary deduction, which implies your teen must file if that they had any revenue in any respect, are:

  • Connecticut
  • Illinois
  • Indiana
  • Massachusetts
  • Michigan
  • New Jersey
  • Ohio
  • Pennsylvania
  • West Virginia

Some states tie their customary deduction into the federal customary deduction, which implies your little one would solely should file taxes in your state in the event that they filed a federal return.

These states are:

  • Arizona
  • Colorado
  • Idaho
  • Maine
  • Missouri
  • New Mexico
  • North Dakota
  • South Carolina
  • Washington, D.C.

See: Teenagers & Taxes: How A lot Can Your Teen Make Earlier than Needing to File Taxes?
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Minnesota’s customary deduction is $12,525, which is price mentioning because it’s simply $25 under the federal customary deduction. In different states, you’ll need to converse with a tax professional to find out in case your teen must file. You may as well reference the State Revenue Tax Charges chart at TaxFoundation.org to search for your state’s customary deduction for people at TaxFoundation.org.

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