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Show Taxes and the working student OGDEN Students who have part-time or summer job3 need to think about more than what hours they should work or how to spend their earnings. High on their list of considerations should be whether to have taxes withheld. Some of the many things which affect the need for withholding are: How much will the student make at this and any other job during dur-ing the year? Does the student have a savings account or other investments which pioduces income? Does (or will) the student have a scholarship which will be partially or fully taxable during the year? Can the student be claimed as a dependent on someone else's tax return? Each of these factors should be considered when students fill out Form W-4, 'Employee's Withholding Allowance Certificate,' Cer-tificate,' to determine how much, if any, tax should be withheld from each pay check. In general, a single student who can be claimed as a Dependent: Does not have more than $500 in total income, some part or all of which is unearned income; or Is under age 24 at the end of the calendar year and earns up to $3,250 in wages, tips and taxable scholarships, provided he or she has no unearned income such as interest or dividends; or Is 24 or older at the end of the calendar year, has no unearned income, and earns less than $2,050. Students who are 24 or older at the end of the calendar year and earn $2,050 or more can no longer be claimed as dependents on another an-other person's return. More information. Form W-4 and Publication 4, Student's Guide to Federal Income Tax, may be obtained ob-tained by calling the Internal Revenue Service at 1-800-TAX-FORM (1-800-829-3676). |