| Lots of students work through the summer months | | | | This represents your share of the FICA tax. FICA |
| while attending school full time during the rest of the | | | | taxes are made up of Social Security and Medicare |
| year. Here are some things that they should know | | | | taxes. Because the self-employed are entitled to |
| about summer employment and the IRS. | | | | Social Security and Medicare benefits, they are |
| First, you need to fill out a W-4 form for withholding at | | | | required to pay the FICA self-employment tax. This |
| every place where you work. Students who earn an | | | | tax is calculated and paid on Schedule SE of form |
| income are taxpayers and need to observe the same | | | | 1040. |
| rules as all other taxpayers. Filing an accurate W-4 | | | | ROTC students participating in special training are paid |
| form is one of these rules. | | | | a subsistence allowance, which is not subject to |
| If you have a job parking cars or waiting tables, you | | | | taxation. Active duty pay, like the type received during |
| probably receive tips in the course of your workday. | | | | advanced summer training camp, is taxable. |
| Whatever job you do, the tips you receive are taxable | | | | If you are a newspaper carrier, you are probably an |
| income and must be reported to the IRS. If you work a | | | | independent contractor and subject to |
| job where tips are a common occurrence and do not | | | | self-employment tax in the event that all of your pay |
| list any gratuity income on your income tax return, the | | | | for newspaper delivery relates to sales rather than the |
| IRS may become curious enough to question you | | | | number of hours worked, you perform your |
| about it. | | | | newspaper delivery services under contract and the |
| Any work you do under-the-table represents a taxable | | | | contract states that you are considered self-employed |
| income and should be reported on your income tax | | | | for the sake of federal tax purposes. |
| return, whether it is walking dogs or mowing lawns. | | | | Minor children who deliver newspapers are generally |
| If your work under-the-table amounts to a net of $400 | | | | not considered self-employed by the IRS. |
| or more, you are required to pay self-employment tax. | | | | |