Tax Tips for Students with
a Summer Job
your child a student with a summer job?
Here's what you should know
about the income your child earns over the summer.
All taxpayers fill out a W-4 when starting a new job. This
form is used by employers to determine the amount of tax that
will be withheld from your paycheck. Taxpayers with multiple
summer jobs will want to make sure all their employers are
withholding an adequate amount of taxes to cover their total
income tax liability. If you have any questions about whether
your child's withholding is correct, please call the office.
Whether your child is working as a waiter or a camp counselor,
he or she may receive tips as part of their summer income. All
tip income is taxable and is, therefore, subject to federal
Many students do odd jobs over the summer to make extra cash.
If this is your child's situation, keep in mind that earnings
received from self-employment are also subject to income tax.
This includes income from odd jobs such as babysitting and
your child has net earnings of $400 or more from
self-employment or church employee income of $108.28, he or
she also has to pay self-employment tax. This tax pays for
benefits under the Social Security system. Social Security and
Medicare benefits are available to individuals who are
self-employed just as they are to wage earners who have Social
Security tax and Medicare tax withheld from their wages. The
self-employment tax is figured on Form 1040, Schedule SE.
Subsistence allowances paid to ROTC students participating in
advanced training are not taxable. However, active duty
pay--such as pay received during summer advanced camp--is
Special rules apply to services performed as a newspaper
carrier or distributor. As direct seller, your child is
treated as being self-employed for federal tax purposes if the
following conditions are met:
child is in the business of delivering newspapers.
pay for these services directly relates to sales rather than
to the number of hours worked.
Delivery services are performed under a written contract which
states that your child will not be treated as an employee for
federal tax purposes.
Generally however, newspaper carriers or distributors under
age 18 are not subject to self-employment tax.
A summer work schedule is sometimes a patchwork of odd jobs,
which makes for confusion come tax time. Contact the office if
you have any questions at all about income your child earned
this summer season.
Please call the office if you would like more information
about tax planning strategies this year. Help is just a
phone call away at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or check us out at our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,