School’s out and many students will be starting summer jobs. The Internal
\nRevenue Service reminds students that not all the money you earn may make it to
\nyour pocket. That’s because your employer must withhold taxes.<\/p>\n
Here are six things the IRS wants students to be aware of when they start a
\nsummer job.<\/p>\n
1. When you first start a new job you must fill out a Form W-4, Employee’s 2. Whether you are working as a waiter or a camp counselor, you may receive 3. Many students do odd jobs over the summer to make extra cash. Earnings 4. If you have net earnings of $400 or more from self-employment, you will 5. Food and lodging allowances paid to ROTC students participating in 6. Special rules apply to services you perform as a newspaper carrier or School’s out and many students will be starting summer jobs. The Internal Revenue Service reminds students that not all the money you earn may make it to your pocket. That’s because your employer must withhold taxes. Here are six things … Continue reading
\nWithholding Allowance Certificate. This form is used by employers to determine
\nthe amount of tax that will be withheld from your paycheck. If you have
\nmultiple summer jobs, make sure all your employers are withholding an adequate
\namount of taxes to cover your total income tax liability. To make sure your
\nwithholding is correct, use the Withholding Calculator on www.irs.gov<\/a>.<\/p>\n
\ntips as part of your summer income. All tips you receive are taxable income and
\nare therefore subject to federal income tax.<\/p>\n
\nyou receive from self-employment \u2013 including jobs like baby-sitting and lawn
\nmowing \u2013 are subject to income tax.<\/p>\n
\nalso have to pay self-employment tax. This tax pays for your benefits under the
\nSocial Security system. Social Security and Medicare benefits are available to
\nindividuals who are self-employed the same as they are to wage earners who have
\nSocial Security tax and Medicare tax withheld from their wages. The
\nself-employment tax is figured on Form 1040, Schedule SE.<\/p>\n
\nadvanced training are not taxable. However, active duty pay \u2013 such as pay
\nreceived during summer advanced camp \u2013 is taxable.<\/p>\n
\ndistributor. You are a direct seller and treated as self-employed for federal
\ntax purposes if you meet the following conditions:<\/p>\n\n
\nto sales rather than to the number\u00a0\u00a0 of hours worked.<\/li>\n
\ncontract which states that you will not be treated as an employee for
\nfederal tax purposes.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"