Top 5 Tax Tips For students starting a Summer Job!

Summer is just around the corner, which means many students will start their summer jobs for extra cash. Here are some useful tax tips every parent or student should know when starting their summer job! 1. How to complete Form W-4 when starting a New Job – This form is used by employers to determine the taxes that will be withheld from their paycheck. A student who is claimed as a dependent of another with income only from summer and part-time employment can earn as much as $6,100 (the standard deduction amount) without being liable for income tax. 2. Tips – Many students work as a waiter or camp counselor over the summer. With these jobs, the student will likely receive tips as part of their summer income. All tip income received is taxable income and is therefore subject to federal income tax. Employees are required to report tips of $20 or more received while working with any one employer in any given month. The reporting should be made in writing to the employer by the tenth day of the month following the receipt of tips. […]