Summer jobs are an excellent opportunity to learn responsibility, in the areas of work ethic, time management, and financial responsibility.
According to the Bureau of Labor Statistics, 20.3 million youth were employed in the summer of 2015. This is a significant increase from only 2.1 million employed during the school year. If your child is a student and one of the millions joining the work force this summer, kudos to them! Along with establishing a good work ethic & building time and financial management skills, a summer job also means learning about the obligatory duty of paying taxes.
To help navigate the tax process, here is one of six tax tips to be aware of when your child prepares for their summer job. We hope these tips will help you & your child plan ahead and know what to expect as they begin their summer job.
#1 Understand the Rules for Claiming Dependents: Now that your child has a summer job, you might be wondering if you can still claim him/her as a dependent on your own return. The answer is, “Yes.” A child under the age of 19 (or under the age of 24 and a full-time student) can make any amount of income & still be claimed as a dependent as long as you are still providing more than half their support. This includes food, shelter, clothing, entertainment, school expenses, vehicle expenses, etc. As “independent” as your child may feel now that they are taking some responsibilities of their own, when you add up all the expenses, it may be surprising to see how “dependent” working children still are on the support of their wonderful parents!
STAY TUNE FOR:
#2: Filling Out Form W-4: Determine How Much to Withhold:
Tomorrow, Same Time, Same Place …………………..