Tax Tips For Students With Summer Jobs Here are some tips students should know about summer jobs and taxes:
Source: 7 Tax Tips For Students With Summer Jobs Written by Brent Phillips, August 7th, 2015 https://taxpoint.com/7-tax-tips-for-students-with-summer-jobs/
Keep a Record of Your Earnings
While we typically think of employment or income as being only associated with working directly for a company, some work you do may be counted as self-employed income. Even jobs like baby-sitting and mowing lawns count. Be sure to document all of your income and report it when you file your tax return.
Adjust Your Withholding
If you work as an employee for a company, your employer will withhold taxes from your paycheck automatically. You can use the Withholding Calculator on the IRS website to estimate your taxes for the year and determine if you need to give your employer a new W-4 to change the amount you withhold.
Paying Estimated Taxes
If you are self-employed and expect to owe more than $1,000 in taxes, you may be required to pay estimated taxes to the IRS. Paying estimated taxes is a means of breaking up your final tax liability by making regular payments on set dates through the year.
Tip Income
Income from tips is taxable and must be declared on your tax return. Additionally, $20 or more in cash tips in a given month must be reported to your employer. Document and track your tips through the year to make life easier come tax season.
Payroll Taxes
Income taxes aren’t the only taxes you may be liable to pay, there’s also Social Security and Medicare taxes. If you are an employee, then these will also be automatically deducted from your paycheck. If you’re self-employed then you may have to pay them yourself.
Don’t Forget Your Expenses
Keep records of all expenses you incur related to your work, such as materials and equipment. They may qualify to be deducted from your income on your tax return, lowering your taxable income and reducing your taxes.
Special Rule for Newspaper Carriers
Special rules apply to a newspaper carrier or distributor. If you meet certain conditions, you are self-employed. If you do not meet those conditions, and are under age 18, you may be exempt from Social Security and Medicare taxes.
File For Free
If you only need to file W-2 income, you may qualify to file your income taxes for free. You may not have to file at all if you don’t meet the filing requirements. Even so, you may still want to file your income taxes. For example, if you withheld taxes you’ll need to file a return to get your tax refund.
For More Details Visit www.taxdefensenetwork.com Or Call (800) 691-5390
Source: 7 Tax Tips For Students With Summer Jobs Written by Brent Phillips, August 7th, 2015 https://taxpoint.com/7-tax-tips-for-students-with-summer-jobs/