Daughter wants a part-time job

[tammygirl1]

My daughter just turned 16 and wants to get a parttime job since we don't have the funds to get the extra's we did when we lived on credit cards. Before we decided to file I was constantly telling her that if she wants the extras that she needed to get a job then. My question is, if she can get a job in this economy do we need to include this as income? I am assuming we will but thought I would post it. She knows we are in a debt repayment plan of sortsbut haven't explained it all to her...
thanks for your input.

[Exployer1234]

Is she going to use the money to help pay the bills or is this income strictly hers?

[tammygirl1]

It will be strictly for her to spend on what she wants (ie going to a movie or getting her hair done which we can't afford anymore).

[Exployer1234]

I would ask your attorney, but I don't think the money she makes will count as income for your family, unless she is paying some of the family bills. Why I say this is because she will have to file her on taxes on what she makes even though she is a minor. This means you should not have to use her income as part of your BK.

[lrprn]

If you file Ch 13 and your 16-year-old daughter is living in your home and is employed, you will include her income in your family income calculations on the Means Test. However, later in the Means Test forms, since she contributes nothing to the running of the household, all of her income will be subtracted back out. In the end her employment income should not impact your filing at all.

[Flamingo]

Discuss with your attorney because this is after the fact of your filing. Since she is your dependent and that is listed on your Chapter 13, her income will now offset what you need to supply for her and therefore increase your income since you won't have to give her money for what she needs. Check with your attorney...

[SMinGA]

I agree w/ consulting atty just to be safe - but otherwise I disagree w/ Flamingo ASSUMING she is not taking care of her own food, basic clothing, etc. needs.

She is not going to be paying rent, utilities, buying her own groceries, etc. She will spend $ on teen stuff I suppose. Going out with friends, buying things you would not be buying her anyhow. And she'll still eat your groceries, use your electricity, etc. So I don't think it would have an impact on the household budget. (If she goes out on Friday night for example are you really going to buy less groceries for the week? She may buy an expensive pair of jeans, but you'll still probably buy her basic clothing items. What 16 year old wants to spend her money on underwear, socks, etc.?)

[sheilaE]

Great point SMinGA! Our daughter also just got a p/t job and I didn't even know about needing to tell the atty, so when the times comes (We haven't filed yet) I'll tell him. She's making min. wage & works part time with varying hours. Everything she makes is going towards her second year of college, and she's still going to come up wayyyyy short. She doesn't even use any of it on clothing or fun stuff.

[Flamingo]

I agree w/ consulting atty just to be safe - but otherwise I disagree w/ Flamingo ASSUMING she is not taking care of her own food, basic clothing, etc. needs.

She is not going to be paying rent, utilities, buying her own groceries, etc. She will spend $ on teen stuff I suppose. Going out with friends, buying things you would not be buying her anyhow. And she'll still eat your groceries, use your electricity, etc. So I don't think it would have an impact on the household budget. (If she goes out on Friday night for example are you really going to buy less groceries for the week? She may buy an expensive pair of jeans, but you'll still probably buy her basic clothing items. What 16 year old wants to spend her money on underwear, socks, etc.?)

I am assuming you didn't go through BK with teenagers; if that is the case, be thankful! ....Going into Chapter 13 with a daughter going into 9th grade had me ask my attorney a ton of questions. One of them was if she starts to work during our chapter 13 (i.e. summer or part-time job year round). The child's income increases the household income. It's part of the household income at filing if the child is working then. Most kids who go to work start to pay toward their car insurance, movie tickets, gasoline, etc., etc., funds that would normally be given to them by their parents or paid for by the parents. Those funds are included in the entertainment, clothing, insurance amounts, etc., etc. amounts given to the attorney prior to filing. The child is a dependent and can make up to a certain amount each year and not have taxes withheld on that amount. The child is claimed as a dependent on the parents' tax returns and listed on the first page with the child's SS number. It's all tied together. The BEST thing to do is to discuss fully with one's attorney as to one's family circumstances especially if the child is being claimed as a dependent in that household.