Many colleges have recessed for the summer and students are seeking summer employment. The IRS reminds students that summer jobs offer a multitude of opportunities to learn about the corporate world and makes you aware of the importance of taxes.
Employers will be giving you an Employee’s Withholding Allowance Certificate which you will need to fill out correctly. If you have questions, use the calculator tool at www.irs.gov. If you receive tips as part of your income, those are taxable. Keep a daily log of those tips and if you receive $20 in tips in any one month report those tips to your employer once a month.
You may not earn enough money from your summer job to owe income tax, but you will probably have to pay Social Security and Medicare taxes.
For more information about income tax withholding and employment taxes, visit www.irs.gov.