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Paperboy turns 18. More taxes to pay!

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Newspaper1

Carol,

My son is a newspaper carrier who turned 18 in September. Does he now have to pay social security tax and federal on the whole years earnings or on the amount earned after he turned 18?

Anne

Anne,

Everything I read seems to point to age 18, which means he is exempt from Self Employment tax (Social Security and Medicare taxes) up until his birthday. Pay the Self Employment tax only on the earnings received after his 18th birthday.

When the IRS means “the year-end of the year a person turns 18,” they say so. In this case, they seem to mean the day a person turns 18.

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.

Yes, newspaper carriers get special treatment from the IRS. Read more about it here.

I hope that helps!

Carol Topp, CPA

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