Does Your Summer Job income
Qualify for Tax Exemption?

The summer season brings new life, warm weather, and boundless opportunities! For instance, are you a college student who has picked up a seasonal summer gig? Or a teen starting your first job? Whether you're mowing lawns, or lifeguarding, that income could qualify to be tax exempt!

The Details

It may sound too good to be true, but if you anticipate working as an employee and making less than the annual standard deduction ($12,950 for single taxpayers in 2022), none of your earnings are subject to federal taxes! Important: If you are self-employed, plan ahead by saving at least 15.3% of your paycheck to cover your federal self-employment tax.

Make Sure Your Earnings Aren't Taxed

If your annual earnings will be less than the standard deduction, be sure to claim EXEMPT on your W-4 form when starting your summer gig! That will prevent federal income taxes from being withheld from your paycheck.

Tip:

Remember that if you can be claimed as a dependent on someone else's tax return, the limits for tax-free unearned income such as interest and dividends are lower.

Still not sure if you qualify? Click here to talk to one of Gold Standard's seasoned tax accountants.


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