Newsbreak: Is Your Teen Missing Out on a Tax Refund? What Parents Need to Know About 1099 Work and Taxes

If your teen worked a job or side gig as a 1099 contractor last year, they may have to file federal and state income tax returns by April 18, 2023, based on a republished report by NASDAQ on February 24, 2023. As a parent, you may be wondering if your kid is eligible for one of the benefits that come with being an adult: a tax refund.

However, according to a report by GOBankingRates on February 24, 2023, teens don’t typically claim dependents on their W-4 forms, which means they likely have less money taken out of their paychecks, reducing the likelihood of a tax refund. Additionally, teens may miss out on many of the tax credits and deductions that adults enjoy, such as the child tax credit and deductions for state and local taxes.

Despite these challenges, teens who paid more in withholding taxes throughout the year than they were supposed to will receive a tax refund after filing their tax returns. Unfortunately, the IRS doesn’t publicly report on taxes paid or owed by children or teenagers, so there are no records of whether most teens receive a tax refund or how much they might receive, on average.

To ensure that your teen receives their refund, it’s important to establish a bank account in their name for direct deposit. The IRS encourages taxpayers to use direct deposit as it’s the fastest, easiest, and most secure way to receive their tax refund.