Summer Income Tax Reminder – Did You Know? (1/2)

Students and other people who earn summer income, including gig economy and other self-employment income, should prepare now for potential federal tax obligations.

They may normally have taxes withheld from their paychecks by their employer after filling out a Form W-4. However, if the job is regarded as self-employment, like baby-sitting or lawn care can be, they should keep good records of all expenses to help maximize potential deductions.

In the case of lawn care, potential deductible expenses may include business cards, fliers, fuel, equipment rentals, chemicals, work mileage, etc.

In addition, minors, and young adults with self-employment earnings (including gig economy income) of at least $400 must file a federal tax return and may owe self-employment tax in addition to federal income tax. Our tax professionals at RTW Xxact Enterprises can help advise on potential deductible expenses and required tax filings. Contact us today.