Teens and taxes: Does your state require your child to pay income taxes?

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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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About the Author

Dawn Allcot is a full-time freelance writer and content marketer with interests in finance, e-commerce, technology, and real estate. His long list of publishing credits includes Bankrate, Lending Tree and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology and entertainment website. She lives in Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten and three lizards of different sizes and personalities – plus her two children and her husband. Find her on Twitter, @DawnAllcot.