HR Alert

IRS Publishes Tax Tips for Teenagers with Summer Jobs

Guidance on Tax Withholding, Tip Income Reporting & More

Students and teenagers often get summer jobs to earn extra spending money or to save for later. The IRS offers a few tax tips for taxpayers with a summer job:

  1. Withholding and Estimated Tax: Student and teenage employees normally have taxes withheld from their paychecks by their employers. But some workers are considered self-employed and may be responsible for paying taxes directly to the IRS. One way to do that is by making estimated tax payments during the year.
  2. New Employees: When people get new jobs, they need to fill out a Form W-4, the Employee's Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from the employee's pay. The IRS Withholding Calculator Tool on can help a taxpayer fill out the form.
  3. Self-Employment: Some types of work--like babysitting and lawn care--are considered self-employment, which is taxable. Keep good records on money received and expenses paid related to the work, because IRS rules may allow some, if not all, costs associated with self-employment to be deducted, reducing the taxes you pay.
  4. Tip Income: Employees should report tip income. Keep a daily log to accurately report tips. Report tips of or more received in cash in any single month to the employer.
  5. Payroll Taxes: Taxpayers may earn too little from their summer job to owe income tax. Employers usually must withhold Social Security and Medicare taxes from their pay. If a taxpayer is self-employed, then Social Security and Medicare taxes may still be due and are generally paid by the taxpayer, in a timely manner.

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