Son Full Time Student with Campus Job and No Tax Taken Out

[twoenough]

While working on my son's taxes through Turbotax I noticed tax not taken out of his checks. Our son is a college sophomore and had 2 jobs in 2024.  One job was on campus and that W-2 shows they did not take out Federal Tax.  Do I file this W-2 normal and they will take tax or is there some kind of exemption since he was part of work study?  His 2nd job was a co-op.  That W-2 did not take out city tax.  This is in a different city then his permanent home address.  Do I just file that W-2 in my city like normal and they will take tax?  He files his own tax return because he generally receives a return.

[Vanessa A]

Yes, if you are filing a tax return for him, all income from all sources included all W-2's need to be included on one return.

No, there is not an exemption for work study.  it is likely that the amount he was making was under the threshold for having taxes withheld.  If he was paid less than $14,600 in the year he would not need to file a return, so if his weekly pay would come out to less than that, then they would not have withheld taxes unless when he filled out his W-4 he would have indicated that they should withhold more.  

If not having taxes withheld causes him to owe, you will just need to make the payment when filing the return or set up a payment plan or you can choose to file now and then pay later.  TurboTax will give you all the options for paying a tax due. 

For the city, if they did not take out taxes, you would still file it normal, including all income on one return, and then you may have to send a check in with his return to pay what was not paid if he has an amount due. 

[twoenough]

Thank you

[Hal_Al]

Q. One job was on campus and that W-2 shows they did not take out Federal Tax.  Do I file this W-2 normal?

A.  Yes.  Campus jobs are usually  exempt from FICA (social security & medicare) tax. so boxes 4 & 6 being blank is correct.  Box 2 (federal income tax withholding) is also not unusual, but tax will be assessed at tax filing, if the student has enough total income. 

Q.  Do I just file that W-2 in his residence city, like normal, and they will take tax?

A. Yes.  

You don't say what state and cities are involved.  If is unusual that workplace city tax was not withheld. But, residence city tax is still due and it all come out even (the residence city gives a credit for tax paid to the work city).

[twoenough]

Thank you Hal_Al

[twoenough]

Hi Again Hal-Al,

He worked in Dayton, OH and his permanent address in Amherst, OH. His Dayton employer did not take out city tax. Do we have to file in Dayton and Amherst or just Amherst where permanent address is?

[Hal_Al]

Here's the generic answer:

 You normally only have to file a return in the city you live in. It is not necessary to file one in the city you work in, if different. Your employer will remit withholding to the city you work in, but you do not file a return unless you're claiming a refund or your employer didn't withhold enough ( both highly unusual). The city you live in will allow a credit or partial credit for the withheld tax you paid to the work location city. 

So, yes, if he physically worked in Dayton (not just that the employer has an office there), he is suppose to file a Dayton return to pay the shortfall.  But, I wouldn't do it.  It's highly unusual for an employer not to withhold the correct amount.  There may be some other reason for nothing being withheld. You may want to ask them. 

The City of Amherst tax rate is 1.5% with a 1% credit given for taxes paid to other cities. The Dayton tax rate is 2.25%.