W-2s, 1099s, filing thresholds, refunds, and why your refund isn't free money. The plain-English tax guide every teen wishes they'd read first.
Taxes are money the government collects to pay for things: roads, schools, the military, Social Security, Medicare. Almost every working person pays them.
If you're a dependent (claimed on a parent's tax return), you generally need to file if any of these are true for the tax year:
Every January, your employer mails (or emails) you a W-2. It summarizes the previous tax year:
Key takeaway: Taxes aren't optional — even for teens. If you earn over the standard deduction, you file. A refund just means you overpaid. Knowing the basics now means tax season is a 30-minute task, not a panic.
Questions people ask
I made $5,000 last summer. Do I have to file?
Not required (under the standard deduction), but you should file to get back any federal tax withheld. It's free and takes 20 minutes.
What if I don't get a W-2?
Ask your employer first. If they don't respond by mid-February, contact the IRS — they can help you reconstruct your wages.
Do I pay tax on tips?
Yes. All tips are taxable income. If you got cash tips that weren't reported on your W-2, you're supposed to add them to your return.
What's the difference between a deduction and a credit?
A deduction reduces your taxable income (you pay tax on a smaller number). A credit reduces your tax bill itself, dollar for dollar. Credits are more valuable.
Can my parents still claim me if I work?
Yes, as long as you're under 19 (or 24 if a full-time student) and they provide more than half your support. Check the dependent box on your own return when they claim you.
What if I can't pay the tax I owe?
File anyway (the failure-to-file penalty is bigger than failure-to-pay). Then set up an IRS payment plan online — they're surprisingly flexible.