How much can a kid earn before they have to file taxes?

There are two different thresholds and confusing them is the most common mistake families make here.

For self-employment income, the number is $400. Net, for the year. Cross it and a federal return is required and self-employment tax is owed at 15.3%, which covers Social Security and Medicare. This is the threshold that applies to almost every kid business, because mowing lawns and babysitting are self-employment rather than wages.

For wages from an employer, the number is the standard deduction, which is $16,100 for 2026 and was $15,750 for 2025. A teenager with a part-time job earning under that generally owes no federal income tax, though they may still want to file to get back anything withheld.

A third number exists for unearned income like interest and dividends, which is $1,400 for 2026. Most kid businesses never touch it.

So a kid with a lawn route can owe tax at $400 while a kid with a summer job at a restaurant owes nothing at $8,000. The difference is not the amount, it is who is paying the payroll taxes. A self-employed person owes both halves themselves, which is exactly why the threshold is so much lower.

Net is the operative word on the $400. Expenses come off first, so fuel, supplies, and equipment reduce the number that counts. A kid who never tracked expenses may look like they crossed the line when they did not.

This is a starting point rather than a ruling. Figures are for the 2026 tax year and were checked in September 2026, they change most years, state rules differ, and none of this is tax advice.