School may be out for the summer but many students are using their break to gain job experience and a steady paycheck. If you’re a student with a summer job, don’t forget to plan ahead for something else – tax preparation. While you may not want to think about it now, making the right moves today can really help you out when your student tax returns are due in the spring. Here are four summer tax tips for students from Blackwell’s Tax Service.

  1. Check your payroll taxes: Many students don’t earn enough money at their summer jobs to even have to pay income taxes. But if you do, an amount will be withheld. Additionally, your employer is required to withhold Medicare and Social Security taxes from your paycheck.
  2. Self-employed workers have different circumstances: Are you working for yourself this summer? If you have a lawn service or provide child care, you’re learning important lessons in entrepreneurship. But don’t forget that you’re solely responsible for any required tax payments. This includes income taxes as well as Medicare and Social Security payments. A tax preparation company can help you figure this out.
  3. Know how the type of work you do affects your taxes: If you’re working for a company, you should have had to fill out a W-4 form. This form allows your employer to withhold the correct amount for your federal income taxes. Keep up with your income and expenses so you’ll have what you need to claim tax deductions in the spring. There are many other circumstances that a tax preparer can help you sort through.
  4. Tips must be claimed: If you receive tips at your summer job, don’t forget that your tip income is taxable. You’re required to report monthly tips of $20 and above to your employer, as well as on your yearly tax returns.

Don’t wait until your taxes are due to learn what you need to do. At Blackwell’s Tax Service, our tax preparation service is available all year long to handle all your questions and concerns.