Tip #2: Filling Out Form W-4: Determine How Much to Withhold:
Before your child begins a summer job, he or she will be required to fill out a federal & state Form W-4 to instruct the employer how much to withhold for federal & state income taxes. To determine how much, if any, should be withheld, it is important to note the thresholds of when our child will need to file an income tax return. Estimate how much they will earn this summer based on their wages & expected hours to be worked. Regardless of amounts withheld for income taxes, Social Security & Medicare tax will be withheld at the regular 6.2 & 1.45 percent rate and is never available for refund.
STAY TUNED FOR:
Tip #3 If no Taxes are Withheld, Set Money Aside to Be Prepared for Tax Time:
Tomorrow, Same Time, Same Place