Taxes for Teens

As a teen in the U.S, you need to file taxes for your investment income if you make over $2,100/year from stock profits or other investments 🤑

Reminder: stock profits only means cash from selling a stock or receiving a dividend payout! If you keep the stock in your portfolio, then it can’t be taxed. 💡

If your parent wants to file taxes for your investment income, they can use Form 8814.

But, your profits will be taxed at your parent’s tax rate, which is typically higher, sacrificing more of your money. 👨‍👩‍👦

Capital Gains Tax is tax on individual stock sales.

You only have to pay Capital Gains Tax if you make more than $40k/year. 🤯

Earned income tax is taxation on job and non-investment profits.

You have to file earned income tax if you make over $10,400/year using Form 8494 📑

If you have your own business or are a contractor you must file Self Employment Tax if you’ve make over $400/year 💼

Most taxes from your 2021 profits are due by Monday, April 18 2022!

You’ll get a tax notification if you’re required to pay investment income tax based on your stocks on Bloom.