60 Seconds: Uncle Sam Wants a Piece of your Kid's Summer Job

So your kid got a job at the local ice cream shop this summer. That's great! Free ice cream for you -- and more taxes paid to Uncle Sam. Give me 60 seconds and I'll tell you how (why) he gets his share.
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After all those years of mooching off of you, your teenager finally is earning some money this summer!

That's great -- but don't forget that Uncle Sam thinks its great too.

So if your dependent kid has a real job and gets a W-2, she probably will have to to file a tax return.

Because you can't just throw the income she made on your personal 1040 return. 

So watch our video above to hear exactly how to report that new income.

Presuming your dependent kid is unmarried, she can use Form 1040-EZ.

But if you have a budding entrepreneur, be aware of self-employed taxes, so that means she may need to file a Schedule SE .

And if you hire your child to work at your self-employed business, you can deduct her wages but you have to file a W-2. If you're company is a sole proprietorship or a partnership, than those wages are not subject to FUTA (federal unemployment) if she is under 21 and they are not subject to FICA/Medicare if she is under 18. 

If your business is incorporated, then you're SOL and the regular employment tax rules apply.

But for more on all of this, watch the video above now!