Did you know that teenage newspaper carriers have special status with the IRS? Yes, they get a 15.3% tax break!
Newspaper carriers under age 18 do not have to pay self-employment tax. Self-employment tax is the same as Social Security and Medicare taxes for self employed people. It is approximately 15.3% of your net profit from your business.
From the IRS website:
http://www.irs.gov/individuals/students/article/0,,id=96674,00.html
Carriers and Vendors Under Age 18
Carriers or distributors (not including those who deliver or distribute to any point for subsequent delivery or distribution) and vendors (working under a buy-sell arrangement) under age 18 are not subject to self-employment tax.
So newspaper delivery is a great job for a teenager!
Carol Topp, CPA