Tax Tips: Tips for Young or First-Time Workers: Don’t Forget About Taxes

If your child or grandchild has recently secured employment, pass along these helpful tips from the IRS:

    • Don’t be surprised when your paycheck is smaller than you expect. Employers withhold taxes and pay them directly to the IRS.

    • Keep in mind that all tip income is taxable, and you must report tip income over $20 monthly to your employer.

    • Even if you don’t earn enough from your first job to owe income taxes, your employer must withhold Medicare and Social Security taxes from your paychecks.

    • Any money you earn from working for others is taxable. If you mow lawns, babysit, or earn money outside a regular job, you may be considered self-employed by the IRS.

    • Speak to your employer about whether they will be reporting your wages to the IRS. If you have questions, ask your parents or grandparents to put you in touch with a tax expert.
    For more information about tax rules for first-time jobholders, visit or consult a qualified tax advisor.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from[6]
[6], May 20, 2019.