Tax Tips for Students with Summer Jobs
Do you have a child or grandchild working this summer? Well, you might want to share the following tax tips with them!
- If they have a self-employed job this summer, such as being a nanny, babysitter, or landscaper, they may have to pay their estimated tax directly to the IRS because they won’t have an employer withholding taxes for them.
- In addition, these self-employed students may be able to deduct some of their costs as business expenses. Tell your children or grandchildren to keep detailed records of their expenses this summer.
- Remember, tip income is taxable too (even if it’s cash).
- Although your summer worker might not earn enough to owe income tax, they will likely still owe Social Security and Medicare taxes. Most employers will withhold these taxes or if they’re self-employed, they might have to pay these taxes themselves.
Do you know a young person trying to earn a little extra income this summer? Share these tips with them to make sure they are up on their tax requirements.
To learn more about CapSouth Wealth Management and the services we provide, visit our website at www.capsouthwm.com or call our office at 800.929.1001.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov[i]
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[i] https://www.irs.gov/newsroom/tax-tips-for-students-with-summer-jobs
