Summertime is a great time for students to hold a job or do side work in their free time. Not only does this responsibility promote a good work ethic, it provides experience in earning and managing money. Even though many summer jobs may not seem high earning, it’s important to review these tax tips with students who are working.
Often times a summer job is a first job, so this is a great opportunity to teach about income and taxes, as well as broader items like tax deductions and required documentation. Sure, there’s not much “fun” about this – beyond the actual paycheck and potential tips being earned – but it’s an important life lesson.
According to a recent article in the Washington Post, “The number of teenagers who have some sort of job while in school has dropped from nearly 40 percent in 1991, to less than 20 percent today, an all-time low since the United States started keeping track in 1948.”
This means more adolescents are heading out in to the workforce with little or no practical work experience to prepare them for future careers. Even if a summer job isn’t directly tied to future career goals, the accountability and financial experience proves to be valuable.
If you have a student at home earning money this summer, we would be happy to meet with them to discuss potential tax implications. You can always reach Adams Accounting Solutions at (913) 888-9100.
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.