6 things about taxes that students should keep in mind as they embark on summer job adventures…
As temperatures heat up and summer break begins, the workplace becomes a classroom to many students. In a “Special Edition Tax Tip” entitled “Summer Job Tax Information,” the IRS points out how the work environment is also a great place to learn about the working world and taxes.
Whether you’re a student yourself, a parent, a teacher, a business owner, a manager or a human resources administrator, here are six key tax lessons you should be aware of when it comes to summer jobs:
- How to fill out a Form W-4, Employee’s Withholding Allowance Certificate.
- Receiving more than $20 in cash tips in a month? Be sure to keep a daily record and report the tips to your employer.
- Mowing lawns, babysitting or cleaning houses? Odd jobs are subject to income tax.
- Summer jobs may be subject to Social Security and Medicare taxes, even if you don’t earn enough to owe income tax.
- In ROTC? Active duty pay is taxable; food and lodging allowances you receive in advanced training are not.
- Special rules apply to income earned by newspaper carriers or distributors. Regardless of age, some are treated as self-employed for federal tax purposes if they meet certain criteria.
The IRS website offers additional resources for students on tax information, IRS Withholding, Form W-4, Self-Employment, and more. Please click here for additional details.
As always, Gray, Gray & Gray’s Tax Department is happy to help answer any questions you may have about tax issues. Please feel free to contact us at (781) 407-0300.