Can a full time student check exempt from tax when applying for a job?
Aug 30, 2010 in
Business
According to the laws and tax accountant that i encounters, a full time student can be exempt from tax when they apply for a job. Then the following check, tax amount should be reduce. Excecption from the Federal Tax and the Social Security tax. So my question is Does a full time college student, not pupil, be able to check the exempt from tax when applying for a job.
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4 comments
v b on August 30, 2010 at 2:23 am
*IF* a full-time student works on campus, there is an exception to the FICA/MC statutes, so the college doesn’t have to withhold FICA/MC for them. (Personally, I’d rather have had the credit on my earnings history.) The college already knows about this exception.
*IF* the student knows they have less than $300 in unearned income (interest on their savings), expects to make less than $5450 total, and didn’t pay taxes in 2007, the student can select exempt for their pay in 2008.
If they apply for a job and expect to make more than $5450 (or have more than $300 in interest), the student *cannot* elect exempt. The employer can refuse to accept the W-4 if they realize the student would owe taxes.
Rigo on August 30, 2010 at 2:23 am
This depends on your situation, if you’re someone’s dependent, and how little you are making. The major question is if you’d be making too little so that you’d fall under the requirements.
But in general, No. Nobody is exempt from taxation, not even students. Though once tax season comes around, you can claim deductions for being a student, but you still have to pay into federal, state, and SSI like everyone else.
bostonianinmo on August 30, 2010 at 2:23 am
You are NOT exempt from Social Security and Medicare taxes. Nobody is!
You may ONLY claim EXEMPT on your Form W-4 if you meet ALL of the following tests:
1. You had $0 tax liability in 2007 and received a refund of ALL income taxes withheld if you filed a tax return.
2. You reasonably expect to have $0 tax liability in 2008. (That generally means wage of less than $5,450, or earned income of less than $850, or self-employment income of less than $400.)
3. If you are a dependent or can be claimed as a dependent, you have less than $300 in unearned income if you have any wages from employment or self-employment.
There is no exemption from taxation merely because you are a student. (And a "student" IS a "pupil." The words are synonymous.) And if you are also a dependent, you will pay HIGHER taxes than someone who is not a dependent. Dependents will start paying tax as soon as their income from wages exceeds $5,450 in 2008 while non-dependents won’t start paying taxes until their income from wages exceeds $8,950. On top of that, dependents start paying tax on unearned income as soon as it exceeds as little as $300 ($850 if it’s their only income) while non-dependents have no such low limit and won’t pay any tax until total income (aside from self-employment) exceeds $8,950.
Judy on August 30, 2010 at 2:23 am
Only if you expect to make little enough that year to have no tax liability, and you did’t have any tax liability the previous year. It has nothing to do with being a student.