If it looks like your child's self-employment income will exceed $400, have the same discussion about that process and the different forms they may have to file, as well as the need to keep receipts of expenses and why.This would also be a good time to explain the basics of Social Security and Medicare and the benefits of earning credits in these programs.Tell your child that, depending on their total income for the year, they can probably receive a refund of income taxes withheld but that FICA deductions will not be refunded and will be withheld from earned wages for all of their working years.Go over that first paycheck stub. Talk about gross earnings, any deductions for income taxes, and any deductions for FICA taxes (Social Security and Medicare).
