{"id":5929,"date":"2014-05-15T06:47:35","date_gmt":"2014-05-15T06:47:35","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=5929"},"modified":"2022-07-26T16:27:38","modified_gmt":"2022-07-26T21:27:38","slug":"summer-job-exempt-from-federal-withholding","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/wages\/summer-job-exempt-from-federal-withholding\/","title":{"rendered":"Teen Summer Jobs | Are You Exempt From Federal Withholding?"},"content":{"rendered":"

Editor\u2019s Note:<\/em><\/strong> Finding a summer job is great for many reasons, but sometimes teenagers just don\u2019t know where to begin. <\/em>Learn more about teen summer jobs and helping to fill out Form W-4 for minors \u2014 see if you (or your child) is exempt from state and federal withholding.\u00a0<\/em><\/p>\n

Helping Working Teens<\/h2>\n

Working part-time while in school is a great way for teens to build up future savings. Even if your teen won\u2019t be making enough to cover the kinds of expenses they\u2019ll have in the future, earning money through part-time or summer jobs will still make an impact.<\/p>\n

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While this job will not cover their college tuition, it can help your teen finance other student-related expenses, such as textbooks, transportation, groceries, and dorm furnishings. These are all expenses that can eat up loan money and add to the eventual interest.<\/p>\n

When it comes to finding a summer job, have your teen first ask friends and family that may be able to assist them. Maybe it is a friend who works at the local caf\u00e9. Or, perhaps a family member is a doctor or other professional who needs help answering phones at the office. This is an appropriate first step to test the waters and see what is out there within reach.<\/p>\n

If their contacts can\u2019t assist with the job search, it\u2019s time for them to move their efforts online. Ask that they gather a list of places they could see themselves working. Perhaps there\u2019s a local restaurant they like, or a nonprofit organization that lines up with their interests. Maybe they\u2019ll want to take advantage of good grades and tutor other students. Regardless, having a list of potential job opportunities is a key first step to jumpstarting the process.<\/p>\n

Whatever job opportunity your teen might choose to pursue, they will need a resume, which should outline their academic and, if applicable, professional successes. They should be sure to include any academic awards, relevant coursework, leadership opportunities or accolades at student clubs and volunteering opportunities. Highlighting these successes is a lesson in marketing themselves for employers and will help them stand out from the crowd.<\/p>\n

W-4 For Minors<\/h2>\n

As you embark on your new work endeavor, be sure to keep these frequently asked questions in mind:<\/p>\n

1 – \u201cDo I Have to Fill Out a Form?\u201d<\/em><\/h3>\n

On your first day of work, even as a teenager, your employer may ask you to fill out 2020\u00a0Form W-4<\/a>. This form, the Employee\u2019s Withholding Certificate, is used by employers to determine the amount of tax that will be withheld from your paycheck. Your manager, your parents or an HR representative will be happy to walk you through it.<\/p>\n

And if you\u2019re juggling more than one summer job, the IRS advises you, \u201cAdjustments to your withholding usually should be made to avoid owing additional tax, and potentially penalties and interest, when you file your tax return.\u201d<\/p>\n

2 – Your Tips are Taxable<\/h3>\n

Did you get a tip for your outstanding service? Surely you did, because you\u2019re awesome. But the IRS wants you to know this: \u201cAll cash and non-cash tips an employee receives are income and are subject to Federal income taxes.\u201d You\u2019ll definitely want to keep track of your tip income. An easy way to do that is to use Form 4070A<\/a>, Employee\u2019s Daily Record of Tips.<\/p>\n

3 – \u201cAm I Exempt from Federal Withholding Even with an Odd Job?\u201d<\/em><\/h3>\n

If you mow your neighbors\u2019 lawn, babysit the cousins, get some cash for cleaning the community pool, or do other side jobs you may wonder, \u201cam I exempt from withholding?<\/em>\u201d<\/em><\/p>\n

These are \u201cearnings you receive,\u201d and yes, they\u2019re subject to income tax. Be sure to keep track of the amount you earn. When it comes time to file your tax return, you\u2019ll need that information.<\/p>\n

You may use Form W-4 to claim exempt from withholding if you meet the following conditions:<\/p>\n