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



Bonny Oaks School's "Get-together At The Statue" Set For April 29

Last year Bonny Oaks School established the last Saturday of every April as the annual date to “Gather at the Statue” for all alumni, friends, staff, and families.   "The gathering is a celebration of life for those we lost the year(s) before," officials said.   The Statue, donated and erected by alumni in 2014, is on the former grounds of The Bonny Oaks School located ... (click for more)

Lee Day Scholarship Winners Announced

Lee University hosted Lee Day 2017, an annual 30-hour event geared toward prospective students and their families. To wrap up the Lee Day festivities, seven students were awarded scholarships from the annual scholarship drawing. Rachel Stock from Knoxville received a $5,000 scholarship. Hope Jones, also from Knoxville, received a $3,660 scholarship. Rebecca Lynn Cantrell, ... (click for more)

Severe Storms Rake Chattanooga Area; Flash Flooding Possible

Severe storms raked through the Chattanooga area on Saturday. Sale Creek was one of the hardest hit areas. Storm damage on Cooper Road included two crushed cars. Trees were on homes and railroad tracks that are the main line between Chattanooga and Cincinnati. Cooper Road is near Lake Chickamauga. There was also damage along Providence Road at Sale Creek. ... (click for more)

Woman's Body Found On Lookout Mountain

A woman's body was found on Lookout Mountain On Saturday. The badly decomposed body was found by hunters. It was in the woods in a remote area near High Road. The GBI will be investigating. (click for more)

No Tax-Supported Entity Should Get Secrecy In Spending

A shadowy situation has emerged in Chattanooga with an organization that manages millions of taxpayer dollars with no transparency and such a surprising disregard for accountability that one wonders what it would take to wake up elected officials who are supposedly in charge. Welcome to the Chattanooga Area Convention and Visitors Bureau, whose lawyer threatened to sue the ... (click for more)

Roy Exum: Is Dr. Edwards The One?

Just hours after the chairman of the Hamilton County School Board emailed a list of 14 candidates on Friday afternoon to be considered as the next Superintendent of the 42,000-student system to the other board members, Dr. Nakia Edwards, an Assistant Commissioner with the Tennessee Department of Education, became the early “common sense” favorite. And, at first glance, she has ... (click for more)