Summer Job Tax Information For Students

IRS Special Edition Tax Tip 2013-10

Monday, May 20, 2013 - by Dan Boone, IRS
When summer vacation begins, classroom learning ends for most students. Even so, summer doesn’t have to mean a complete break from learning. Students starting summer jobs have the opportunity to learn some important life lessons. Summer jobs offer students the opportunity to learn about the working world – and taxes.

Here are six things about summer jobs that the IRS wants students to know.

1.     - As a new employee, you’ll need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use this form to figure how much federal income tax to withhold from workers’ paychecks. It is important to complete your W-4 form correctly so your employer withholds the right amount of taxes. You can use the IRS Withholding Calculator tool at IRS.gov to help you fill out the form.

2.     - If you’ll receive tips as part of your income, remember that all tips you receive are taxable. Keep a daily log to record your tips. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer.

3.     - Maybe you’ll earn money doing odd jobs this summer. If so, keep in mind that earnings you receive from self-employment are subject to income tax. Self-employment can include pay you get from jobs like baby-sitting and lawn mowing. 

4.     - You may not earn enough money from your summer job to owe income tax, but you will probably have to pay Social Security and Medicare taxes. Your employer usually must withhold these taxes from your paycheck. Or, if you’re self-employed, you may have to pay self-employment taxes. Your payment of these taxes contributes to your coverage under the Social Security system.

5.     - If you’re in ROTC, your active duty pay, such as pay received during summer camp, is taxable. However, the food and lodging allowances you receive in advanced training are not.

6.    -  If you’re a newspaper carrier or distributor, special rules apply to your income. Whatever your age, you are treated as self-employed for federal tax purposes if:

·               You are in the business of delivering newspapers.

·               Substantially all your pay for these services directly relates to sales rather than to the number of hours worked.

·               You work under a written contract that states the employer will not treat you as an employee for federal tax purposes.

      If you do not meet these conditions and you are under age 18, then you are usually exempt from Social Security and Medicare tax.

 

Visit IRS.gov, the official IRS website, for more information about income tax withholding and employment taxes.



Additional IRS Resources:

·         Your First Job

·         Tax Information for Students

·         IRS Withholding Calculator tool

·         Form W-4, Employee’s Withholding Allowance Certificate

·         Self-Employed Individuals Tax Center

·         Student's Page - High School

·         Student's Page - Higher Education

·         Frequently Asked Questions – W 4 Allowances, Excess FICA, Students, Withholding

IRS YouTube Videos:

·         Part-Time and Summer Jobs – English

·         IRS Withholding Calculator – English | Spanish | ASL

IRS Podcasts:

IRS Withholding Calculator – English | Spanish



Dalton/Whitfield, Murray, Gilmer, Gordon, and Catoosa Counties Selected As An Early Education Empowerment Zone

Dalton/Whitfield, Murray, Gilmer, Gordon and Catoosa Counties were selected as one of Georgia’s four Early Education Empowerment Zones and will participate in a community commitment ceremony at 3 p.m. on Oct. 3 at Whitfield/Dalton Day Care Center, 515 South Pentz St. in Dalton.  The five counties will collaborate together in what will be known as the Northern Counties zone. ... (click for more)

Wanda Shelton Named Tennessee Superintendent Of The Year

The Tennessee Organization of School Superintendents met in Gatlinburg, TN on Sept. 7 for the annual awards and recognition dinner. The 2015 Tennessee Superintendent of the Year was announced at the banquet on Sunday night. This year’s honor was awarded to Dr. Wanda Shelton, Lincoln County Schools, South-Central District. Dr. Shelton was named statewide Superintendent of ... (click for more)

Woman Shot And Killed In Catoosa County Residence

A woman is dead after a shooting in Catoosa County. According to Sheriff Gary Sisk, around noon on Friday, sheriff’s deputies and investigators responded to 227 Smoketree Circle, Ringgold, Catoosa County, in reference to a subject being shot.   Upon arrival, officers located two females and one male at the residence. One of the women was observed lying at ... (click for more)

Trooper Discovers Large Amount Of Drugs On Traffic Stop In Marion County

A member of the Tennessee Highway Patrol’s East Bureau Interdiction Plus team initiated a traffic stop   on Thursday   in Marion County that resulted in the discovery of 60 pounds of marijuana. During the traffic stop, the suspect fled the scene and is at large at this time. Trooper Brent McCawley stopped a Lexus ES300 for a traffic violation on Interstate 24 westbound ... (click for more)

You’re Right With Lamar

One of Tennessee’s favorite sons, Davy Crockett, coined an oft-used phrase:  “Be always sure you’re right, then go ahead.” Being sure is quite important, but may be difficult in this election cycle. The Democratic nominee campaigning against Lamar Alexander is a man whose radio ads call for “change,” “fair” taxes and more jobs.  Sounds good, huh?   ... (click for more)

Roy Exum: The Saturday Funnies

Okay … here we go. A number of readers have complained that I haven’t shared any jokes that my friends send to my email address so on a weekend when our Volunteers and Mocs are idle, let’s laugh a little:   I was sitting in a bar one afternoon with an old friend knocking back a few beers when he said, "You know, if we're not careful we'll end up like those two old drunks ... (click for more)