I have a work study award of $1500 at Purdue. Although that would definitely help me with daily expenses, I’m not sure it would be enough. If I were to accept work-study, would that prevent me from getting another job that didn’t pay federal WS money? If I reached $1500, could I go out and find a different job? Would it be more worthwhile to find a job outside of work-study?
Thank you!
Yes. You can get another job that is not work study funded.
The advantage to work study is that, even though it is taxable income (for the IRS), unlike other taxable income, it does not impact your future eligibility for financial aid. So don’t drop the work study, but feel free to take another job if you need to.
To expand on dodgersmom’s post, there is a question on fafsa that asks for income from need-based work programs. That would be work study income and that amount is subtracted from your AGI in the fafsa formula.
Any job you get with the university while a student won’t be subject to social security and medicare tax, work study or not. So first choice given relatively equal pay rates would be a work study job, second choice a non-work study job with the university and 3rd choice a non-university job. Of course if you can get an off-campus job paying significantly more then that may be the way to go. Social security/medicare tax combined is 7.65% when you work for an employer as a W-2 wage earner.
Yes, you can hold both work study and non-work study positions in tandem. My D has a work study job and a non-work study, paid position on the school paper. If she wanted another job on top of that, she could do so. She knows kids who get their work-study funds by working small shifts with several different departments each week as opposed to having one job with lots of hours.
I agree that your best bet is staying on campus for work a they’ll be most understanding of your college schedule but working off campus might be necessary if your at a school where it’s difficult to get a job.
Thank you all for your help!
My daughter’s non-work study job through the university had FICA deducted from the gross amount. No state taxes i that state, and she claimed exempt on federal W4, but those FICA amts were still taken.
http://www.irs.gov/Charities-&-Non-Profits/Student-Exception-to-FICA-Tax
@twoinanddone That sounds just plain wrong.
*Exception to FICA Tax
FICA (Social Security and Medicare) taxes do not apply to service performed by students employed by a school, college or university where the student is pursuing a course of study.
It needs to be working for the university, not just through the university. If a student works in the cafeteria for example, it could be a 3rd party vendor that is the employer for cafeteria workers. I’m sure there are other examples. What entity issued the W-2?
Oh, right, that makes sense- yes, what entity issued the W-2?
The university issued the paychecks and W2.
I would question the school on it. Madison’s link is pretty clear and doesn’t mention it has to be work study. My son working at the dorm desk, as an undergrad TA and tutoring through the school didn’t have FICA paid and he wasn’t eligible for work study.