Working on budgeting for Spring semester. Kiddo is eligible for work study and working on campus. He has all of his paycheck going straight to his account (working for nothing now, but saving himself long term loans saves lots of money - living off money he earned last summer). The deposits to his account are less taxes. So my question is what he can earn the $1750 total and the amount he gets is minus taxes or can he actually be paid (after taxes) up to $1750. I assume it is he can earn $1750 and the taxes come out of it.
If there’s a limit imposed, it would be the gross earnings, before any tax withholding or deductions. There is no FICA withholding from federal work study wages, and any federal or state income tax withholding may or may not be fully or partially refunded, depending on the student’s eventual tax liability.
If he has a job lined up, he can ask if he can only work up to his WS amount or if they’ll continue paying him once he reaches that.
I worked 2 different WS jobs in college. One only allowed work up to the amount but the other kept paying after reaching the limit.
Thanks - that 's what I thought. It looks like they take his federal and state taxes (not much) out. From what I understand he can work up to the amount, but if the job he is in has extra they can continue to pay him. There are several in that work study position so not sure. I was just trying to figure out an estimate of out of pocket expenses for spring and if they are taking out taxes then he/we would have to make up the difference of the taxes taken out of his “paycheck” that is applied to his account.
The amount of tax withholding (in any) is based on the W-4 form that your son completes. So – tax withholding will depend on what your son tells the school to do.