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Time to Think of Student Summer Employment and Tax Implications

Summer employment and tax implications
Okay, we are just about to wrap up the 2013 tax year, and already you need to start thinking about your 2014 tax if you are a student. If you are used to working part time during the school year, or finding summer employment then you already know that this can create some tax implications for you. If this is a new adventure to you then you may now be introducing yourself to the tax world.

 

Hopefully if you have decided to use a qualified accountant to do your 2013 taxes you are going to know exactly what you need to do regarding this summer’s income to make sure it works to your best tax advantage.

 

There are so many potential errors that can take place on a student’s tax return that it becomes really frustrating for them. You may find it annoying that you even need to consider relying on a professional for what should be an easy task like filing your return. Think of it this way though. Once you have graduated from school and are ready to enter the working world you are going to know the real value that an accountant can offer you when it comes to both your future tax paying years, as well as how they can be instrumental in saving you tax dollars via tax planning.

 

Right now you are probably only concerned about how much money you can make this summer to help you pay for the rest of your 2014 school year. Then after working hard all summer you are perplexed to find out that you may have put yourself into a paying tax bracket.

 

Get yourself prepared now before the working season is over for you. If you have not had to file a student return before then at least learn the basics of what you are allowed to make income wise before you will fall into potential tax obligations. Know what potential tax credits you may be able to take advantage of to help offset your tax expense.

 

There are a lot of potential student tax breaks, but there are set criteria that you may have to meet to be eligible for these. This means some pre planning.

 

Finally make the decision to either have a tax accountant handle your last year student tax return for you, or if this is not applicable then put it in your plans for next year’s filing. Knowing how to handle your tax obligations early in life can save you may years of potential tax hassles that you could be faced with in the future.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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