You’re out of school for the summer and trying to make some extra money for next semester don’t forget to pay your taxes. The IRS is a persistent beast and they will not let you get away without their fair share.
1. Your employer is going to make you complete a W-4 (Employee Withholding Allowance Certificate) when you start a new job. This is the form used to determine how much tax will be taken out of your paycheck.
2. If you receive tips during the course of your job don’t forget they are considered taxable income.
3. Lots of students will do odd jobs such as cutting grass and powering washing. Usually you will be paid in cash but this is also taxable income if you make over 400.00 dollars. When you do your taxes you will have to pay self employment tax which goes towards Social Security and Medicare benefits in the future.
4. If you are in a ROTC program you’re food and housing expenses is NOT taxable. If you receive any type of payment for your time outside of food and housing it IS taxable.
While people’s opinion vary greatly on taxes the fact of the matter is you must pay them. If you choose not to pay your taxes be prepared to suffer the consequences. Hanging out with a tax auditor for a few days as they sift through personal financial details then having to pay taxes plus fee’s isn’t my idea of a good time.
