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



Joint Limited Residential Contractor Licensing Class Planned By Chattanooga State And CSCC

Chattanooga State’s Economic and Community Education Department is partnering with Cleveland State Community College to offer a 30-hour Limited Residential Contractor Licensing class. The class will meet two consecutive Fridays and Saturdays, March 18-19 and March 25-26 at Cleveland State’s campus located at 3535 Adkisson Dr. in Cleveland. Class cost is $449 and limited to 20 ... (click for more)

Dalton State School of Business Maintains Elite Accreditation

Maintaining Dalton State’s Association to Advance Collegiate Schools of Business Accreditation keeps the College in an elite group that can offer business students a higher quality education.  Dalton State’s School of Business was recently re-accredited by the AACSB International, a global nonprofit organization of educational institutions and businesses devoted to the advancement ... (click for more)

Female, 18, Shot On South Seminole Early Saturday Morning

An 18-year-old female was shot in the leg on South Seminole early Saturday morning. Chattanooga Police responded to the 200 block of South Seminole of the report of a shooting. There police located one victim suffering from a single, non-life threatening gunshot wound. T he victim,  Cierra L Kirksey, was inside her home when the shooting occurred. The suspect ... (click for more)

City Councilman Chris Anderson Gearing Up For Election A Year Away

City Councilman Chris Anderson is already gearing up for the next city election, though it is over a year away. In the financial disclosures due Feb. 1, he reported receiving $24,165 for the reporting period from July 16, 2015 to Jan. 16. He spent $4,887 during that period. Councilman Yusuf Hakeem took in $11,110 during the period. Councilman Russell Gilbert reported ... (click for more)

Black History Month Hero - Theodore McGraw (Kidd) AKA "Pongee"

I grew up in "Old St. Elmo" on 39th Street behind the Incline. As a child I remember my older brother "Pongee" as being my hero. This month of February being Black History Month, I cannot think of a better person to be honored than my late older brother, Theodore McGraw (Kidd) aka "Pongee" of St. Elmo (Gamble Town). Growing up without my father, Theodore was always available ... (click for more)

Roy Exum: About Lions & Elephants

A family of lions is called a ‘pride’ and rightfully so. The boss of the pride is indeed the ‘King of the Jungle’ and he makes all the big decisions, like when they go hunting, who is going to be ‘boyfriend-girlfriend’ and is quick to settle any family quarrels. But, as with all in nature, there comes a day when the King gets too old to rule. His teeth are loose, his gait hampered ... (click for more)