Tax Tips for Students with Summer Jobs If you are currently a student looking to get a summer job, you are probably looking forward to having a little extra money in your pocket. Although you may not have as much free time as you have in past summers, you will able to earn a little money while gaining some early work experience. Your friends may be annoyed that youâ€™ll be spending a lot of your time working, but they will probably eventually become jealous because you will have more spending money than they do. You may even be using the money you make during your summer job to help you pay for college. This is a very wise and mature thing to start doing while you are still in high school. Many high school students do not like to think about the future and do not make plans for their future.
Save for college now If you start saving up for college now, than you will be one step ahead of most everyone else your age. There are several things you should know about summer jobs, however. One of the most important things to know before you start is that the IRS is going to take taxes out of each of your paychecks. This means that you will not receive every cent of the money you make during the summer. This can come as quite a shock to people who have never had a job or filed taxes before. It is important to know that your employer is required by law to take federal or state income taxes, local taxes, and payroll taxes out of each of your paychecks. This may not seem fair to many individuals. In the eyes of some, it could be considered unfair. But the idea behind having to pay taxes is that the money you pay in taxes will come back to you somehow later down the road. Obviously, it does not always work out like this. It is, of course, not a perfect system. But it is the best our country has come up with so far.
Taxes So, taxes will be taken out of each of your paychecks that you receive while working at your summer job. Another thing you should be aware of when you start your summer job is that you will need to fill out a W-4 form, which is an Employeeâ€™s Withholding Allowance Certificate.
Your employer will use the form to determine how much money they will be able to withhold out of each of your paychecks. If you have more than one summer job, you need to make sure that each of your employers are withholding the right amount so that are able to cover your income-tax liability. You may be dependent on another taxpayer (such as your parents) and then you will not have to file your own tax return. Your parents may have a Las Vegas tax attorney who they seek tax help from. A Las Vegas tax attorney can be helpful when you have questions about your taxes. Talk to your employer and your parents today to figure out what you need to do to start filing your taxes.
Photo credit: Thisisbossi, John Morgan
Published on Jul 26, 2013
If you are currently a student looking to get a summer job, you are probably looking forward to having a little extra money in your pocket....