Today on the Consumerism Commentary Podcast, Tom Dziubek talks with Gregg Wind, CPA at the accounting firm of Wind & Stern, about income taxes related to children’s summer jobs.
First, Gregg and Tom talk about tax advantages for parents who have a business and are thinking about hiring their children as employees. Afterward, they discuss summer jobs for kids in general and things that they should consider doing for their income taxes.
Income Taxes and Your Kids’ Summer Jobs: S07E10 / 166
Table of contents
[00:00] Introduction from Tom Dziubek
[00:37] Interview with Gregg Wind
– [00:51] Hiring your kids to work at your family business
– [01:47] Avoiding the “kiddie tax”
– [03:50] Payroll tax impact
– [05:10] Tax-free benefits
– [05:58] IRA contributions for kids
– [07:39] Summer jobs for kids: explaining the W-4 form
– [10:30] What a teen should withhold for their taxes
– [13:37] Working as an “independent contractor”: the 1099 form
– [16:45] Declaring tips as income
– [18:10] Kids who want to start a business
– [22:04] Self-employment tax even though standard deduction exceeds income
[25:03] End
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Theme music by Mindcube.
Updated September 23, 2012 and originally published July 1, 2012. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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Luke Landes founded Consumerism Commentary in 2003 and has been building online communities since 1990. Luke, also known as Flexo, has contributed to PC World Magazine, US News, Forbes, and other publications. 
