Self-Employed Tax Tips for Students with a Summer Jobs

8 Tips for Teenage Taxpayers with Summer Jobs

Yay, its summertime, and schools are off. Students become part-time professionals and engage with summer jobs or part-time gigs. These students are considered as self-employed individuals during their period of work. If you are a self-employed student for time being, there are also certain criteria that you must be aware of. Just read on to get information related to 1099 self-employed taxes.


Who are considered as self-employed? And who are obliged to file IRS Form 1099? You are self-employed if any of the following apply to you:

    1. When you carry on a business or trade as a contractor or sole proprietor.
    2. When you are a member of a partnership that carries on a business or trade.
    3. In other cases, when you start your own business this also includes part-time business.

Self-employed Tax Tips for Students

    1. People are self-employed nowadays for different reasons; it may be due to their economic status, to engage themselves in their leisure time or maybe personal commitments. The reasons for self-employment may differ, but it is mandatory to file Form 1099-MISC.
    2. When you are a student and receive Form 1099-MISC, then you are considered as a self-employed individual or a contractor. And they may not have any federal withholding taken.
    3. If you are self-employed, you must have several write-offs, and make sure that you are marking all your expenses. This can help you at the time of filing your tax return and reduce the tax as well. Failing to do this can increase your tax amount.
    4. In the event of business mileage, the mileage rate comes around .575¢ per mile for a standard mileage. Here, when the employer does not recompense the full amount, the self-employed student can make a deduction for the difference.
    5. When you receive 1099 MISC, it refers that you will be subjected to self-employment tax (SE tax). The SE tax is based on the net income if the total income exceeds $400 for the given tax year. Generally, the SE tax is calculated by 15.3% out of the net income. Here it is wise if the clients can withhold 30% of the gross income received for taxes. Here the gross income refers to the total amount paid to the self-employed from the company. Note that even if the revenue or the income does not exceed the standard deduction of $6,300, they still need to pay the SE tax.
    6. Subsistence allowances that are paid to the ROTC students who are participating in the advanced training are not taxable. But on the other hand, the active-duty pay like pay received during the summer advanced camp is taxable.
    7. If you are a child under the age of 18 and engaged with your family business which is unincorporated, then the child I not subject to payroll taxes (FICA). It not applicable to a child under the age of 18 while he or she is employed by the parent. Here both the child and the parents who employed their child for the business are not required to pay the employee’s share of the FICA taxes.
    8. As a self-employed student who has the federal withholding on your 1099 MISC or W2, must know that they must file their tax return within 3 years of the actual due date. By doing so, you will be entitled to receive any potential refund.

Be Lawful and a Loyal Taxpayer

As a responsible individual of the country, it is your duty to file your tax returns properly. Do not think that a ‘tip’ you received for your work is non-taxable. Even the tip is a reportable income and it is taxable though it is paid in cash. If you have received $20 or more dollars as a tip in any one month it is loyal to report to your employer. Hence know more about our tax system and its importance.