Skip to main content
June 12, 2024
Question

Tax implications for hourly rate earned in second job with 3/4 applied to student loan

  • June 12, 2024
  • 3 replies
  • 0 views

As a master's student and unpaid intern who also works fulltime on weekdays to pay the bills, I am about to graduate and then will be eligible to earn an hourly rate for counseling hours toward becoming a licensed therapist. I plan to put 3/4 of what I earn back on my student loan. Does any of that play into how much tax I should owe for this "second job" on weekends? Hope this was clear.

3 replies

Employee
June 12, 2024

Only the interest paid on your student loan is deductible.   Your 1098E will show the amount of interest that can be used on your tax return.

 

Use the W-4 tool to estimate how much tax to have your employers withhold from your paychecks.

https://turbotax.intuit.com/tax-tools/calculators/w4/ 

https://www.irs.gov/individuals/tax-withholding-estimator

https://www.irs.gov/pub/irs-pdf/fw4.pdf

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Employee
June 12, 2024

Q.  Does any of that play into how much tax I should owe for this "second job" on weekends?

A.  No. What you spend your money on does not, generally, affect how that income  is taxed.  Nothing you described would be an exception to that rule. 

reevarcoeAuthor
June 13, 2024

These answers are really helpful, thanks!