Teenager filing taxes

[Isaiah Mars]

Hi, do I have to file taxes if I use peer to peer lending services. For instance, if I help a family member or friend with something and they send me money through PayPal, would I have to pay taxes on it? If so, at what earned amount of money is this action required? What would the process be like under 18 and in school still? 

[MinhT1 · Accepted solution]

You only have to report interest earned if the loan to the family bears interest.

Interest is unearned income. If you have no other income and your interest income is less than $1,100 for the full year, you are not required to file a tax return.

Please read this TurboTax article for more information.

[Isaiah Mars]

Does money that is received as a gift for a birthday or special event count as unearned interest?

[DoninGA]

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@Isaiah Mars wrote:

Does money that is received as a gift for a birthday or special event count as unearned interest?

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Gifts received from an individual are not reported on a tax return, regardless of the gift amount.

[Isaiah Mars]

Thank you!

[fanfare]

@Isaiah Mars 

Lucky you.

Tax software is expensive.