Teens & Taxes: Does Your State Require Your Child to Pay Income Tax?

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As tax season is upon us, parents may be facing many new tax situations. And if your teen had earned income from a gig or part-time job or unearned income from investments, they might have to pay state income tax as well as federal taxes.

See: Teens & Taxes: What Documents Does Your Child Need to File Taxes?
Find: The 4 Best Bank Account Options for Kids and Teens

State tax for individual taxpayers is also due on Tax Day, which falls on April 18 in 2022 due to a federal holiday on April 15, 2022.

Eight U.S. states do not collect state income tax. So, if you live in one of these states, your child — just like any adult — would not have any state income tax burden. Those states are:

  • Alaska
  • Wyoming
  • Florida
  • South Dakota
  • Texas
  • Nevada
  • Washington
  • Tennessee

New Hampshire only taxes residents on interest and dividends — not earned income.

In other states, if your teen is subject to federal income taxes — which they will need to if they earned more than $12,550 — they may have to file a state tax return, as well. It all depends on whether their salary exceeds the standard deduction for their state. States with no standard deduction, which means your teen will have to file if they had any income at all, are:

  • Connecticut
  • Illinois
  • Indiana
  • Massachusetts
  • Michigan
  • New Jersey
  • Ohio
  • Pennsylvania
  • West Virginia
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Some states tie their standard deduction into the federal standard deduction, which means your child would only have to file taxes in your state if they filed a federal return.

Those states are:

  • Arizona
  • Colorado
  • Idaho
  • Maine
  • Missouri
  • New Mexico
  • North Dakota
  • South Carolina
  • Washington, D.C.

See: Teens & Taxes: How Much Can Your Teen Make Before Needing to File Taxes?
Find: 5 Teen Jobs That Don’t Exist Anymore — and How To Make Money Instead

Minnesota’s standard deduction is $12,525, which is worth mentioning as it’s just $25 below the federal standard deduction. In other states, you’ll want to speak with a tax expert to determine if your teen needs to file. You can also reference the State Income Tax Rates chart at TaxFoundation.org to look up your state’s standard deduction for individuals at TaxFoundation.org.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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