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Podcast 166: Income Taxes and Your Kids’ Summer Jobs

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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.

Consumerism Commentary Podcast
Income Taxes and Your Kids’ Summer Jobs: S07E10 / 166

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Table of contents

Consumerism Commentary Podcast[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

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

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 @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

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