Internship Tax question

Career Opportunities & Internships
1

Hey everyone!

I was so fortunate enough to be offered an internship at a company I really wanted this summer in NYC. I have a question about the payment though & taxes.

I’m an “at will employee,” but according to HR I should still expect to get a W-2 and not a 1099, so I’m not necessarily an independent contractor (if that makes any difference in taxing).

My gross pay based on hours worked & hourly pay is expected to be at around $5,000 for the whole summer. I’m paid bi-monthly so approx $1200 every two weeks.

Is there a way to determine how much I will be paying in taxes and how much my pay check will be every two weeks? I’m trying to figure out for budgeting purposes but I’m just so lost in this whole thing. Can I expect to get a tax refund at the end of the year? I thought if you made under a certain threshold then you don’t pay taxes (or maybe i’m just dreaming). Also, I’m claimed as a dependent to my parents, but my dad said he might make me independent for tax purposes but honestly we are all just confused.

Thanks!

2

“At will” simply means they can fire you without cause. Don’t worry though, the whole state of Oregon for example is an “at will” state. Employers can’t simply fire people willy nilly, nor should you expect to be on the block the moment you walk in. It’s just a technical term.

As for taxes, at the end of the year you’ll get everything back that was pulled for state and federal income tax. Social Security and Medicare (FICA) will not be returned.

This will help: https://www.adp.com/tools-and-resources/calculators-and-tools/payroll-calculators/salary-paycheck-calculator.aspx

3

Your dad doesn’t get to decide whether you’re independent for tax purposes. The IRS has a definition for being someone’s dependent. You either meet that definition or you don’t. There is no choice.

4

The IRS will take roughly 15-20% out of your checks.

I believe you do get back anything you make under $6,300 even though they take it out while you are working. I don’t think you will be making enough to file as a single.