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Author: dferrier Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121461  
Subject: Wages as a student worker Date: 3/7/1998 9:35 AM
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Are wages earned while attending college as a student worker taxable?
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Author: tc001 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2483 of 121461
Subject: Re: Wages as a student worker Date: 3/7/1998 7:46 PM
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<Are wages earned while attending college as a student worker taxable?>

Of course they are! Otherwise we'd spend the rest of our lives going to college to avoid taxes ;)

However, you *may not* have to file if you meet certain requirements. These are listed under (you guessed it) "Filing Requirements" in the instruction booklet for the 1040/1040A/1040EZ tax returns. Pick one up at the post office or library and look at it.

The basic rule is that no return is necessary if you had under $6800 in income as a single filer, or under $4150 of *earned* income if someone (your parents) claims you as a dependent

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Author: tc001 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2485 of 121461
Subject: Re: Wages as a student worker Date: 3/7/1998 7:54 PM
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Sorry, but I wasn't paying attention to what I was doing and submitted the first reply before finishing my answer. Where was I?

Oh, yeah. The complete set of rules is obviously more extensive than the basic rules I gave, so get the instruction booklet, read it, and ask if you still have a question.

As I final note (now that I'm paying attention), if any tax was withheld from your paychecks, even if you are not required to file you should still do so to get a refund of the amount that was withheld.



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Author: JeanDavid Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2486 of 121461
Subject: Re: Wages as a student worker Date: 3/7/1998 7:59 PM
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<

<Are wages earned while attending college as a student worker taxable?>

Of course they are! Otherwise we'd spend the rest of our lives going to college to avoid taxes ;)

However, you *may not* have to file if you meet certain requirements. These are listed under (you guessed it) "Filing Requirements" in the instruction booklet for the 1040/1040A/1040EZ tax returns. Pick one up at the post office or library and look at it.

The basic rule is that no return is necessary if you had under $6800 in income as a single filer, or under $4150 of *earned* income if someone (your parents) claims you as a dependent >

The trouble is that unless your employer was breaking the law by failing to withhold income tax and social security and medicade insurance, you will need to file in order to get a refund, if they withheld more than necessary.

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Author: tc001 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2496 of 121461
Subject: Re: Wages as a student worker Date: 3/8/1998 1:20 PM
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<The trouble is that unless your employer was breaking the law by failing to withhold income tax and social security and medicade insurance, you will need to file in order to get a refund, if they withheld more than necessary.>

Segment 1:<..unless your employer was breaking the law..you will need to file in order to get a refund..>

Yep. I already said that about the refund, but it's worth repeating. As a side note, while I'm not an expert on payroll taxes, I believe that you can legally have no withholding for income tax by the employer. The calculation, if I'm correct, is determined by comparing your projected annualized income with the threshold level tied to your W4. I don't believe that it is always true that a wage earner will have federal income tax withholding, but the exceptions will be at very low income levels.

Segment 2:<..and social security and medicade insurance, you will need to file in order to get a refund..>

Nope, not entirely correct. I believe Medicade has no cut-off, so no excess could occur. SS is assessed on about the first $65K of income, but excess payment would *only* occur if you exceeded that total *and* it came from multiple employers. At that income level, not filing is no longer an option regardless of refund status. (And if you can earn that as a student, please hire me when you're running your own company!)

I don't think that JeanDavid meant to imply that FICA could be refunded if you're a student, but some might mistakenly read it that way. I hope this answers that question before it's asked.

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Author: Jafus Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2499 of 121461
Subject: Re: Wages as a student worker Date: 3/8/1998 5:04 PM
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Most likely your student wages are taxable (for income tax) even though they may be exempt from social security and medicare taxes. This is typical for an enrolled student performing services for a college or university.

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