Kids and Jobs
Updated: January 7, 2009
You may not be looking forward to summer, if it means idle teens around your home, surfing the internet and the refrigerator, rather than being involved in gainful employment.
Q: Working always seems like a good idea. Is it a "must do" for every teen?
Working does help kids develop practical knowledge, good habits and even specific skills, if they are lucky enough to get a job or internship in a field they`re interested in.
There are many considerations other than just wanting to keep your kids busy during the summer months, and saving money for college.
Q: What are some of the factors to consider?
Can your child contribute to an IRA?
It takes earned income to contribute to an IRA - which in itself is a good reason for a child to have a summer job. Even if he or she never contributed another penny, a single IRA contribution of $4,000 could grow to over $125,000 compounded for 50 years.
Will your teen be applying for financial aid? More and more college students require aid each year. When determining the family contribution, parent`s assets are calculated at a much lower percentage than children`s assets. Whatever funds the child earns and doesn`t spend may be included in this calculation.
Is your family eligible for the Hope credit? If your child is entering the first or second year of college, you may be able to claim the Hope credit if your AGI is less than $107,000 (married filing jointly) or $53,000 (single taxpayer), for up to $1,500 in tax savings. If the family income is too high, the child may be able to file his own tax return in order to take advantage of the credit.
Q: Other suggestions?
Will a work permit be necessary?
Under Illinois law, minors age 14 or 15 may work, but must first obtain an Employment Certificate, and work hours may be restricted. During summer break June 1 through Labor Day, 14 and 15 year olds may only work during the hours of 7:00 a.m. and 9 p.m., up to 48 hours per week, but not more than 6 consecutive days.
Valuable lessons can be learned from other experiences too! Volunteer jobs can build many of the same skills as paid employment. Enrolling in summer school or at the community college may save the cost of taking classes at a more expensive university.
