NEW YORK (MainStreet)Will your teen-age son or daughter be working during summer vacation?
The 2013 federal standard deduction for a dependent child with a W-2 is the greater of $1,000 or the sum of $350 and the dependent's earned income, not to exceed $6,100. The state filing threshold amount may be more of less than $6,100.
Before starting work, your dependent will be given a Form W-4 to fill out. If your son or daughter does not expect to earn more than $6,100 during 2013, including up to $350 in interest, dividends and capital gains, have him or her claim "EXEMPT" on the W-4. This way he or she will not have to file a federal or state income tax return simply to get a refund of the income tax withheld.
If your state tax filing threshold is less than $6,100, you can usually file a separate state Form W-4 to have state income tax withheld.
You should consider opening up a Roth IRA account for your working dependent son or daughter.