A seasonal job could last anywhere from three to eight months, depending on the company, the position, and how long a “season” lasts. Holiday retail workers, camp counselors, lifeguards, and holiday mail delivery drivers would all fall under this category.
Even TaxSlayer hires about 300 seasonal workers to assist with support during the busy tax season. Seasonal employees provide valuable relief, but they also have tax obligations – even when they only work part-time. Here are some of the top seasonal employees’ tax questions answered.
Do I need to file taxes for a seasonal job?
Even though seasonal work is usually temporary and short-term, you must file taxes if you’re under 65, filing as a single taxpayer, and your income is more than the standard deduction.
Does someone else claim you as a dependent? If so, you’ll need to file your own return if you earned more than the income threshold to be claimed as a dependent during your season of employment. You do not need to file a tax return if you’re being claimed as a dependent and make less than the income threshold to file taxes as a dependent.
Let’s say you’re single, worked for four months as a lifeguard, and earned $4,000 by the end of the season. Your employer did not know you would make less than the standard deduction, so they withheld tax from each paycheck. However, you’re not required to pay tax because you don’t meet the income threshold.
In this case, you might not be required to file a tax return. But you could still be eligible for a tax refund. It’s important to know that you can only get a refund if you submit a tax return, so you may want to file anyway.
Do I need to fill out a W-4 for a seasonal job?
Yes. For any job, seasonal or full-time, you must fill out a W-4 so your employer can report your income to the IRS. This form also tells your employer how much money they should withhold from your paycheck for federal and state taxes, if any. Filing out a W-4 does not mean you will owe taxes.
What is a tax-exempt employee?
When you fill out a W-4, you have the option to claim a complete exemption from federal income tax withholding. That means that your employer will not withhold taxes from your paycheck.
If you choose tax-exempt status, you will be responsible for paying any taxes you do end up owing. Each state also has a different rule regarding tax exemption, so you might have to fill out an additional form for your state.
How can I claim tax-exempt on my W-4?
As an employee, you can only claim tax exemption if you received a refund of all federal income tax that was withheld from your wages last year (because you owed $0 for taxes) and you expect to be refunded all your federal income tax again this year.
Note: If you make less than the standard deduction in a calendar year and claim tax exemption, you might not need to file a tax return at all.
Do taxes have to be withheld from my paycheck if I only work one season?
When you work for an employer, they are required to withhold some money from your paycheck for income taxes and FICA. When you work a full-time or non-seasonal position, the amount withheld is based on a 12-month work calendar.
However, seasonal employees only work for a few months out of the year, so using this method means there would be too much withheld. If you work less than 245 days (about 8 months) during a calendar year, your employer should use the part-year withholding method instead.
Do I have to report tips from my seasonal job?
If you receive tips at your job, chances are you do need to report them as part of your income. For any month you earn $20 or more in tips, the IRS requires you to account for it on your return. It’s easy to lose track of cash tips, so keeping an accurate daily log for your own records is important.
