Students do summer jobs usually and here is the things you should know about your child income.
There is W-4 form which is filled out by all taxpayers before starting a job. This form is used by employers to evaluate the sum to be deducted from pay checks as tax. Students with multiple summer jobs wants that their employers withheld sufficient amount to cover their total income tax liability. If you have any doubt regarding your child’s withholding, call chartered accountant in Delhi.
Your child is working as a manager or waiter, he may receive tips. Al l tip income is subject to taxation.
Whether your child is earning from odd jobs like babysitting. All the income from self employment is also taxable.
If your child income is more than 24,000 Rs /$400, he or she need to pay self employment tax.
Newspaper carriers or distributors under age 18 are not subject to self –employment tax.
There are so many other types of jobs regarding which you are confused about paying taxes or not. The simple solution is to call tax advisor in India. These taxes are for social security and Medicare facilities. So, there is always scope of doing something meaningful to society.
Ruchi Anand and Associates, top Indian audit firms provide all tax related solutions from tax filing to company formation.