Taxation of Child’s Earned Income

A child’s earned income is subject to the same tax rates and brackets as an adult’s. In 2026, the standard deduction for a single filer is $16,100. Earned income below this threshold is exempt from federal income tax.

For example, if a child earns $17,500 from a job:

1.

The first $16,100 is offset by the standard deduction.

2.

The remaining $1,400 is taxable income.

3.

Since this falls into the lowest (10%) tax bracket, the federal income tax liability is $140.

Even if a child’s earned income is below the standard deduction, filing a tax return is necessary to claim a refund for any federal or state income taxes withheld by the employer.