Summer Job Tax Info You Need to Know - WHLT 22 Connecting the Pine Belt

Summer Job Tax Info You Need to Know

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According to the IRS students working at a summer job may not earn enough to owe income tax but they will probably have to pay social security and medicare taxes.

As a new employee, students must fill out a W-4 employee's withholding allowance certificate - so employers withhold the right amount of tax from regular pay, bonuses, commissions and tips.

"Any compensation that you make is subject to reporting on a tax return," says Robert Cummings, with Cummings and Cummings Tax Service. He says that any extra money such as tips that students make must be reported on tax returns. "According to the IRS anybody regardless of what type of job you're in, if you receive more than 20 dollars in tip income in any given month you are required to report that to your employer."

If you're a baby-sitter or mowing lawns this summer to earn extra cash you're technically considered as self-employed. "It is your requirement and your responsibility for you to keep up with the amount of income that you earn," says Cummings.

If a student's net earnings from self-employment are 400 dollars or more, you have to pay self-employment tax and file Schedule SE.

For 16 year old Mikayla David this is her first summer job she got it to help out her parents, "just to get extra money help out with my mom and everything, get responsibility, show responsibility." She's making more than minimum wage because she's a certified lifeguard at Pep's Point Water park. "I get to pay for my own stuff and it's very rewarding," says David.

According to the IRS whether you're required to file a return next year from summer jobs this year will depend on the type and the amount of your gross income, filing status, age and whether someone is eligible to claim you as a dependent.

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