Yes. Many students are provided work-study jobs working at their college. Although this money you earn is intended to ease the financial burden of attending college, the income is fully taxable on your tax return just like any other employment earnings.
Earnings from a work-study position are subject to state and federal payroll taxes.
If you are currently enrolled in college full time, and currently work less than half time, you are exempt from Social Security and Medicare withholding, but not income taxes.
Your employer will give you a W-2 that will list all the required information.
There are no specific tax credits
or deductions to take advantage of for work-study. However, if you’re using
work-study to pay for tuition, that tuition is eligible for the American
Opportunity or Lifetime Learning tax credit.
Tax credits can’t be claimed for
tuition paid for by tax-free income like grants and scholarships, but
tuition paid for by work-study is eligible.
