WHEELING, W Va. (WTRF) – A summer job is a great way for students to learn new things about the working world.
But it’s also a wake-up call to the world of taxes.
In most cases, any money students earn from working is considered taxable income by the IRS.
Whether or not you’ll have to fork over any cash to Uncle Sam depends on how much money they make and what kind of work they do.
Typically, if you’re a full-time student for most of the year, you may find you won’t need to file a return if you work just two or three months of summer.
However, just because you’re 16, 17 or 18, you are not exempt from taxes.
“A lot of kids, if it’ their first job, they’re going to get their check and see that little word FICA on there for the first time. As we all know, they’re going to start taking social security, West Virginia state tax, and federal taxes out. They need to be prepared to not receive the exact amount they made,” said Jason Haswell from The Monteverde Group.
Haswell believes getting a summer job is a good thing in the long run.
It teaches students how money works, how to balance a checkbook and how to save some money in the bank.