UNDATED (WSAU) -- Officials from the Internal Revenue Service are reminding young people with their first summer jobs to keep an eye on their finances and be prepared to pay taxes.
IRS Spokesman Christopher Miller says the basic thing to know is you should be ready to pay taxes. "Overall students who are working this summer need to know that money you earn doing work for others is almost always taxable." That includes long term jobs at a retailer or food service, as well as self-employment like working as a babysitter or cutting lawns.
Students should also expect to have parts of their check withheld to pay for their taxes. "You will need to fill out a W4, and that is the form for employee's withholding. And that means your employer will use it to figure out how much federal income tax to withhold from your pay."
Young people on their jobs may have to file tax returns this year for the first time as well. "That threshold is around 10-thousand dollars. So if you make 10-thousand dollars at your summer job, you're likely going to have to fill out a tax return and include that income on your tax return." Even if you aren't required to file taxes, if your employer is withholding pay for taxes, you'll want to be able to get a tax refund.
The IRS has help for young workers available on their website at www.irs.gov.