My daughter has a paid co-op this semester. I think I’ve read that her income from co-oping will not be counted on the FAFSA, right? But what about for tax purposes? Filling out her W-4 and wasn’t sure if we should put exempt in box 7 or just leave it blank? She put exempt on her W4 for her part time job because she doesn’t make over the 6300 or 6400 she is allowed, but she will make over that for this coop. I wasn’t sure if monies made from student co-ops are treated differently, probably not but wanted to ask. Thanks
She will have to pay taxes - it will be treated as any other income (take out taxes, ss, etc.) Co-op income is not considered for FAFSA. Usually the kids get back some taxes as they are taxed assuming a tax bracket as if their income will be for 12 months and they only work for 6 months.
Be very careful that state taxes from your home state are taken out if the co-op is out of state.
Thanx for the replies! Her co-op is in state but thanks for the reminder, we never know where she may go