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9 years ago
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Taxes for Students with Summer Jobs
Do Students have to pay taxes on their summer income?
Many students may not realize they have to pay taxes on their summer income. Whether students are babysitting, mowing lawns, delivering newspapers, or other jobs, they must pay taxes on the income they've earned.
The following kinds of income often received by students are generally taxable:-Pay for services performed
-Self-employment income
-Investment income
-Certain scholarships and fellowships
Some tips on taking preventative measures:
- Know your employment classification
Ask your employer about your status and how you're being paid. Be clear about whether your employer considers you an employee or an "independent contract worker."
- Tally your tips
Tips are taxable income, so you will have to tell the IRS in 2011 what you made in tips this year. Keep a record of what you earn.
- Keep your pay stubs
Without pay stubs, employees have little to help them report their income. Often, the stubs have cumulative information, so the last one will be enough to save.
- Know what's withheld
Read your pay stubs carefully, knowing what money you receive isn't the same as knowing what money you earned.
- Be aware of tax-filing basics
Many students may be working their first job and they'll have to file taxes perhaps for the first time, so consider these tax basics
Depending on where you work, there are several different ways in which you might need to file your taxes. Be sure to do your homework to find out what tax obligations the IRS wants students who are earning income to know
Visit the FAQ at USA.gov to learn more
more - Know your employment classification
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