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




Chattanooga State And South College Sign Articulation Agreement

Dr. Rebecca Ashford, president of Chattanooga State and Mr. Steve South, president of South College, signed an articulation agreement between the two institutions on Jan. 9. This articulation agreement will guarantee qualified students enrolled in Chattanooga State’s pre-pharmacy classes an interview with the School of Pharmacy to pursue a doctor of pharmacy degree. The agreement ... (click for more)

GNTC And Foundations Work Together To Train Northwest Georgia’s EMS Professionals

With the population closing in on one million people in Northwest Georgia, combined with the more than 300 EMT openings currently available in the Peach State, it was an easy decision for two regional foundations to team up to make a gift to Georgia Northwestern Technical College (GNTC).   Betts Berry with the Jewell Foundation and Steve Tarvin with the Pierce Foundation ... (click for more)

Snow Reaches Chattanooga on Tuesday Afternoon, But Brings Little Accumulation; Many Schools, Most Courts Closed Wednesday

Snow began falling in downtown Chattanooga early Tuesday afternoon, but there was little accumulation.  The National Weather Service issued a special statement on Tuesday night warning of icy roads. It says:  SPECIAL WEATHER STATEMENT UNTIL  9AM EST  WED ...VERY COLD TEMPERATURES AND PATCHY ICE ON ROADS THROUGH  WEDNESDAY MORNING... TEMPERATURES ... (click for more)

Young Gets 23 Years In North Chattanooga Murder

Abram "AB" Young pleaded guilty on Tuesday morning to a murder in North Chattanooga and was sentenced to 23 years in prison. Young was 17 at the time of the 2015 slaying of 19-year-old Charles Holsey during a drug deal behind the Kangaroo on Dallas Road. He is now 20. Prosecutor Cameron Williams said the sentence for second-degree murder will be served at 100 percent. Young ... (click for more)

Thank You, Dr. Martin Luther King, Jr.

Thank you, Dr. King for stepping-out.  Thank you for your lasting voice to what it's all about. Thank you, Dr. King for  stepping up and also showing-up, ...when decisions were being made and  your refusal  to shut-up.  We find your fingerprints on both directions and toward progress.  your modeling, mentoring,  and reactions helps ... (click for more)

Roy Exum: Once In A Blue…

On August 21st this past summer, four black women were walking down the street in Dayton, Tn., when a white man asked from his porch, “Are you ladies here to see the eclipse?” Told that yes, they most certainly were, the gentleman pointed to his back deck and another white couple and said, “If you don’t have plans, would you care to sit with us?” The ladies were delighted and ... (click for more)