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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


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

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 December 19, 2017 and originally published July 1, 2012.

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About the author

Luke Landes 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 Luke Landes and follow him on Twitter. View all articles by .

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