Released: June 08, 2006

No summer break from taxes

Source: By Michelle Singletary, Syndicated Columnist [Washington Post] (Free Registration)

And you thought you could have the summer off with no tax issues to think about? Fuhgeddaboudit.

In many cases, however, some summertime moves could land you some welcome tax breaks. For example, working teenagers or college students should be careful how they fill out their W-4 forms for their summer jobs to avoid having too much tax withheld. No point in their giving money to the government when they could use it now.

Here’s the deal. You may be exempt from tax withholding if you meet all of the following criteria: you can be claimed as a dependent (usually on a parent’s return), your total 2006 income will not be more than $5,150, unearned income (interest, dividends, etc.) will not exceed $300, and you had no income tax owed for 2005, according to Internal Revenue Service spokesman Jim Dupree.

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