Summer Part Time Teen Income Tax Withholding Guide
Try Our Free Calculators
Want to crunch the numbers yourself? Use these free tools:
- Part Time Salary Estimator — Part Time Salary Estimator
- Take Home Pay Estimator — Take Home Pay Estimator
- Hourly to Salary Calculator — Hourly to Salary Calculator
The Core Formula
Formula = Gross Pay − FICA (7.65%) − Federal Income Tax Withholding = Net Pay
2026 Dependent Standard Deduction ≈ $14,600 (income below this is generally federal-income-tax-free)
The 7.65% FICA is split as 6.2% Social Security + 1.45% Medicare, and the employer matches it. This is non-negotiable at almost every job.
Step-by-Step: Estimating A Teen’s Summer Take-Home
Let’s run a real example. Your teen works as a camp counselor in Pennsylvania at $15/hour, 25 hours per week, for 10 weeks.
- Calculate gross summer pay: 25 hrs × $15 × 10 weeks = $3,750
- Check against the standard deduction: $3,750 is well under $14,600, so no federal income tax should be owed.
- Fill out the W-4: write “Exempt” on line 4(c) if they had no tax liability last year and expect none this year.
- Subtract FICA only: $3,750 × 0.0765 = $286.88 in FICA.
- Net summer pay: $3,750 − $286.88 = $3,463.12
The part-time-salary-estimator handles this math in seconds. To see what actually hits the bank account across the whole year including any side jobs, run it through the take-home-pay-estimator. And to compare a teen’s part-time rate against a full-time annual figure, the hourly-salary-calculator is the right tool.
Worked example, summer paycheck breakdown:
| Line Item | Amount | Notes |
|---|---|---|
| Gross (biweekly, 50 hrs) | $750.00 | 25 hrs/wk × 2 wks × $15 |
| Social Security (6.2%) | −$46.50 | Always withheld |
| Medicare (1.45%) | −$10.88 | Always withheld |
| Federal income tax | $0.00 | W-4 marked Exempt |
| PA state tax (3.07%) | −$23.03 | Most states still withhold |
| Net biweekly | $669.59 | Take-home |
So what does that mean for you? If your teen is shocked that “taxes took out $80,” point them at the FICA line. That’s the part nobody escapes.
2026 Real Case: Working For A Parent’s Business
Here’s where it gets interesting. Marcus, 17, works 30 hours a week for his mom’s sole proprietorship doing yard maintenance and bookkeeping. He earns $16/hour for 12 weeks.
- Gross summer pay: 30 × $16 × 12 = $5,760
- Under-18 child working for a parent’s sole proprietorship is exempt from FICA under IRC Section 3121(b)(3)(A).
- Federal income tax: $0 (under standard deduction).
- Net summer pay: $5,760 — no FICA deducted.
That’s a $440 swing compared to a non-family job at the same wage. The catch: this exemption does NOT apply if the parent’s business is a corporation or partnership, only a sole proprietorship (or LLC taxed as one). Get this wrong and the back taxes are ugly.
A client of mine had her son help at her bakery LLC last summer and assumed the FICA exemption applied. It didn’t — the LLC was taxed as a partnership — and she owed back payroll taxes plus penalties in November. Worth checking with a CPA before assuming.
For more on part-time income math, see our part-time FTE ratio calculator guide. And if you’re helping a teen weigh summer work against an internship, our how to calculate part-time monthly and annual income article walks through the comparison.
Teen Summer Job Tax Cheat Sheet
| Situation | Federal Income Tax | FICA (7.65%) | State Tax |
|---|---|---|---|
| Teen, under $14,600/yr, W-4 Exempt | None withheld | Withheld | Usually withheld |
| Teen, multiple jobs, total over $14,600 | Withheld on each | Withheld | Usually withheld |
| Teen working for parent’s sole prop, under 18 | None if under SD | Exempt | Varies by state |
| Teen working for parent’s corporation | Per W-4 | Withheld | Usually withheld |
| Teen earns over $400 self-employed (1099) | May owe income tax | Owes self-employment tax | Varies |
Where do people mess this up? They either over-withhold (teen gets a tiny refund next spring and lost use of the money all year) or under-withhold across multiple jobs and owe at tax time. The W-4 has a “multiple jobs” checkbox for a reason.
Frequently Asked Questions
Does my teenager need federal taxes withheld from a summer job?
Only if they expect to owe more than $400 in self-employment tax or more than the standard deduction in income tax. For 2026, the standard deduction for a dependent is around $14,600, so most summer jobs won’t trigger federal income tax withholding if the W-4 is filled out correctly.
Should a teen claim exempt on the W-4 for a summer job?
Often yes, if total 2026 income will be under the standard deduction and there was no federal income tax liability last year. Write “Exempt” on line 4(c) of the W-4. But if they have other jobs or investment income, run the numbers first.
Are FICA taxes withheld from a 16-year-old’s paycheck?
Yes, in almost every case. Social Security (6.2%) and Medicare (1.45%) apply regardless of age at most employers. The only common exception is working for a parent’s sole proprietorship, which has special FICA rules for under-18 children.
Can a teen get a refund if too much tax was withheld?
Yes. They’ll need to file a 2026 tax return in early 2027 to get back any over-withheld federal income tax. FICA taxes are not refundable. Most teens can use Form 1040-EZ-style filing through free IRS Free File.
The Bottom Line
For most teens, summer tax withholding comes down to two things: fill out the W-4 right on day one, and expect FICA to take 7.65% no matter what. Use the part-time-salary-estimator to model the net check, and you’ll both stop being surprised when the first deposit lands.