Question
Taxes for Students with Summer Jobs
Answer
Many students have a summer job and may not realize they have to pay taxes on their summer income. The Internal Revenue Service (IRS) wants you to know about taxes on income earned while working a summer job.
All employees fill out a W-4 - Employee's Withholding Allowance Certificate (.PDF document) when starting a new job. This form is used by employers to determine the amount of tax that will be withheld from your paycheck. You may use the IRS Withholding Calculator to verify your withholding tax is correct.
Whether you are working as a waiter or a camp counselor, you may receive tips as part of your summer income. All income you receive from tips is taxable income and is therefore subject to federal income tax.
Many students do odd jobs over the summer to make extra cash. Earnings you receive from self-employment are subject to income tax. These earnings include income from odd jobs like baby-sitting and lawn mowing.
If you have net earnings of $400 or more from self-employment, you will also have to pay self-employment tax. This tax pays for your benefits under the Social Security Administration.
Food and lodging allowances paid to Reserve Officers Training Corps (ROTC) students participating in advanced training are not taxable. However, active duty pay received during summer advanced camp is taxable.
Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
You are in the business of delivering newspapers.
All your pay for these services directly relates to sales rather than to the number of hours worked.
You perform the delivery services under a written contract that states you will not be treated as an employee for federal tax purposes. Generally, newspaper carriers or distributors under age 18 are not subject to self-employment tax.
Additional Resources:
IRS Student's Page - High School
Taxable Income for Students
Tax Tips - Restaurant
Filing a Federal Income Tax Return
Please note: To view and print .PDF documents, you must use the Adobe Reader software, which is available for download without charge.
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