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Summer jobs offer students the opportunity to learn about the working world. A major part of working is learning about taxes that may be due on the income you earn, students included.

Here are six things about summer jobs that a working student should know.

  • As a new employee, you’ll need to fill out a Form W-4; employers use this form to figure how much federal income tax to withhold from your paycheck. It is important to complete your W-4 form correctly so your employer withholds the right amount of taxes.
  • If you’ll receive tips as part of your income, all tips you receive are taxable. Keep a daily log to record your tips. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer.
  • If you plan on earning money doing odd jobs this summer, keep in mind that earnings you receive from self-employment are subject to income tax. Self-employment can include pay you get from jobs like baby-sitting and lawn mowing.
  • You may not earn enough money from your summer job to owe income tax, but you will probably have to pay Social Security and Medicare taxes. Your employer must withhold these taxes from your paycheck. Or, if you’re self-employed, you may have to pay self-employment taxes.
  • If you’re a newspaper carrier or distributor, special rules apply to your income. Whatever your age, you are treated as self-employed for federal tax purposes if:
    • You are in the business of delivering newspapers.
    • Substantially all your pay for these services directly relates to sales rather than to the number of hours worked.
    • You work under a written contract that states the employer will not treat you as an employee for federal tax purposes.

If you do not meet these conditions and you are under age 18, then you are usually exempt from Social Security and Medicare tax. Share this tips with your working children so they will be prepared for their summer jobs.