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As tax season approaches, parents may face many new tax situations. And if your teen had earned income from a job or part-time job or unearned income from investments, they may have to pay state income tax as well as federal taxes.
See: Teenagers and taxes: what documents does your child need to file their taxes?
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State tax for individual taxpayers is also due on Tax Day, which falls on April 18, 2022 due to a federal holiday on April 15, 2022.
Eight US states do not collect income tax. So if you live in one of these states, your child – like any adult – would have no income tax. These states are:
- Alaska
- Wyoming
- Florida
- South Dakota
- Texas
- Nevada
- Washington
- Tennessee
New Hampshire only taxes residents on interest and dividends, not earned income.
In other states, if your teen is subject to federal income tax — which they’ll need if they earned more than $12,550 — they may also need to file a state tax return. It all depends on whether their salary exceeds the standard deduction for their state. The no-deduction states, which means your teen will have to file a return if they had any income, are:
- Connecticut
- Illinois
- Indiana
- Massachusetts
- Michigan
- New Jersey
- Ohio
- Pennsylvania
- West Virginia
Some states tie their standard deduction to the federal standard deduction, meaning your child would only have to file taxes in your state if they filed a federal return.
These states are:
- Arizona
- Colorado
- Idaho
- Maine
- Missouri
- New Mexico
- North Dakota
- Caroline from the south
- washington d.c.
See: Teens and taxes: How much can your teen earn before they have to file taxes?
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Minnesota’s standard deduction is $12,525, which is worth mentioning because it’s only $25 below the federal standard deduction. In other states, you’ll want to speak with a tax expert to determine if your teen should file a return. You can also view the state income tax rate chart at TaxFoundation.org to view your state’s standard deduction for individuals at TaxFoundation.org.
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