Student Worker & Taxes

[pkfops]

My wife has been going to school at City College of San Francisco and working there, part time (10 hrs per week).

 

Getting ready for the tax season I checked her pay stubs and there have been no deductions; ie Fed, State or SSA; all straight pay.

Her W4 says Married with 1.

 

I asked her about this and she said " I do not have to pay tax because I am student".

 

Does anyone know about this?

 

thanks

[Randy W]

My wife has been going to school at City College of San Francisco and working there, part time (10 hrs per week).

 

Getting ready for the tax season I checked her pay stubs and there have been no deductions; ie Fed, State or SSA; all straight pay.

Her W4 says Married with 1.

 

I asked her about this and she said " I do not have to pay tax because I am student".

 

Does anyone know about this?

 

thanks

 

 

 

She doesn't pay taxes because they're not being withheld - you will make up the difference . It's not clear how she would have eliminated the SSA, unless they have a separate retirement system for educators. Or maybe she will get a 1099 for independent contractors.

Edited December 22, 2007 by Randy W (see edit history)

[C4Racer]

Students do receive certain exemptions from taxes if they are employed by the college where they are pursuing a course of study.

I do not believe it covers all taxes just FICA (Social Security and Medicare) Tax.

 

Here is some information:

 

http://www.irs.gov/charities/article/0,,id=120663,00.html

 

http://www.irs.gov/faqs/faq-kw186.html

 

It does not seem to exempt her from federal taxes.

 

You might ask the college about why they are not withholding any tax. It might be that she won't make enough working part time to be required to pay tax. The W-4 shows 1, but unless you have gone through some calculations it will not take your income into consideration.

Edited December 22, 2007 by C4Racer (see edit history)