teenager taxes?

Question

My husband's income puts us in the highest marginal tax rate bracket. My 16 year old daughter who lives at home and is our dependent had a job this summer and earned $2000.00. Is she taxed at the same marginal rate rate as my husband?

Answer 1

No. In fact, since she made less than $5150, she doesn't have to report this, or to file at all. This assumes that the $2000 is all from her job, and she didn't have other income.

If she had any federal income taxes withheld, she should file to get them refunded to her.

Depending on where you live, she might or might not be required to file state or local income tax returns, and would possibly have some tax liability there.

I'm impressed, by the way, that parents with income like yours have a daughter who has a summer job already at 16.

Answer 2

For RRSP purposes, it will benefit your daughter someday to file a return. 16 years old pays EI but not CPP and because she made less than the basic exemption she will also get all the income taxes back.nothing more.

This income will affect your child tax benefit if she made more than the allowable amount.

Answer 3

I don't think so. Actually I don't even think she has to file because I'm sure you have to make at least $5000 to do so federally. I remember when I got my first tax return from my first year of working and I got all my tax money back that was taken out of my paycheck and I was 18.

Answer 4

No, because this is earned income. If she has investment income over $1,700 then some of that is taxed at your rate.

Answer 5

I DONT THINK SHE WILL BE , BUT WHEN I APPLIED AT MY JOB THEY ASKED FOR MY PARENTS SOCIAL ALSO SO IM NOT QUITE SURE. I HATE THE FACT THAT WE ARE BASED ON OUR PARENTS EVEN FOR COLLEGE BECCAUSE IF THEY MAKE ALOT AND YOU DONT TALK TO THEM YOU STILL WILL NOT GET FINACIALLY AID.