I'm considering getting a part-time job, but I'm unclear about how taxes work for high school students. If I start working, will I need to worry about taxes, and how much gets taken out of my paycheck?
Yes, as a high school student, you will be subject to taxes if you start working. Generally, anything you earn through your job may be considered taxable income, regardless of your age. The exact amount taken out for taxes will depend on several factors.
Firstly, the amount of money you earn plays a role. The U.S. tax system is progressive, meaning the more you make, the higher a percentage you're taxed. But don't worry - if you're working part-time and don't make much, you might be below the threshold where income tax kicks in.
Secondly, the form you fill out when you start a job, the W-4, affects how much tax is withheld from each of your paychecks. This form lets your employer know how much federal income tax to withhold from your pay. If you claim allowances, less tax will be taken, but you may end up owing taxes at the end of the year if not enough was withheld. If you put down zero allowances, more tax will be withheld from your paychecks, and you are more likely to get a refund at the end of the year.
Lastly, keep in mind there may be other taxes deducted from your paycheck, such as Social Security and Medicare.
It's essential to familiarize yourself with these basics of the U.S. tax system, and consider speaking with a tax professional or trustworthy adult to ensure you understand your tax obligations. Remember, even as a teenager, you may need to file a tax return if you earn above a certain amount.
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