Student Summer Job Taxes

The majority of college students are now home for the summer. If they (hopefully) have a job they may be able to avoid having any federal withholding taxes taken from their pay. To take advantage of this the following conditions must be met:

  1. The student did not owe any tax last year and does not expect to owe any tax this year.
  2. The student can be claimed as a dependent on a parent’s return.
  3. Total unearned income, such as dividends or interest, is less than $350.
  4. Total income for the year is less than $6,200. This amount drops to $1,000 if unearned income exceeds $350.

Assuming that these conditions are met, the student can avoid federal withholding by properly completing a W-4 form with their employer. Note that the student must complete a W-4 claiming exemption from tax for 2014 even if one was completed for 2013.

IRS Circular 230 Disclosure

Pursuant to IRS Regulations, we inform you that any tax advice provided or implied on this post (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed on the taxpayer.

While the information contained in this post is believed to be reliable, we cannot guarantee its accuracy or completeness.