Whether you're a teen with a summer job, doing gig work, or sending children to summer camp, the South Carolina Department of Revenue (SCDOR) offers tax tips for a few tax situations you may encounter during the summer.
Teen Summer Jobs
The number of teens looking for and finding jobs generally increases nationwide during the summer months, according to the U.S. Bureau of Labor Statistics. While last year saw the lowest
unemployment rate for teens since 1953, teens working this summer should keep these tips in mind:
- Teens need to fill out a W-4 form so employers can calculate the amount of taxes to take out of paychecks. Many, if not most, will owe no tax. Even if teens are exempt from withholding, they can still expect to see deductions from paychecks for Social Security and Medicare, according to the IRS.
- Income from tips and self-employment, sometimes called gig work, are taxable and should be recorded and included on tax returns next year.
- If a teen receives pay for Reserve Officers' Training Corps (ROTC) summer activities, that pay also is taxable, the IRS notes.
Seasonal Work
With the nature of some industries, such as tourism, summer can offer seasonal employment, meaning jobs that may exist on a temporary basis. Some workers may decide to do a part-time job or offer services on the side from their regular job during the summer. Whatever the circumstances, remember these tips for seasonal work:
- Whether workers receive most of their money in tips, cash, from employers, or are self-employed, all of their income is taxable and should be reported on tax returns.
- Keep detailed and organized records of business expenses and income if summer income is from self-employment. Deductions can lower a tax bill, but they must be supported by records. Double check the rules for deducting expenses related to use of things like a personal car or house.
Summer Camp
In cases where mom and dad work or are looking for work, summer day camp also may offer a tax break for parents in the form of the
federal Child and Dependent Care Tax Credit.
- South Carolina residents can also claim the Child and Dependent Care Credit on their SC1040 equal to 7% of the child care expenses allowed for the federal credit.
Learn more
For more information about South Carolina Individual Income Tax or tax credits, visit the SCDOR's website at dor.sc.gov/iit.
Learn more about Withholding Tax by attending the SCDOR's free online
Withholding Tax Workshop on August 4, 9:00 am – 11:30 am. This workshop is taught by professionals from the SCDOR, SC Department of Employment and Workforce, and the IRS.
Register now.
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email list, including one specifically for Withholding updates, to stay up-to-date with the latest news and tax tips.
