Question

School part time employee pay regular federal and social security tax?

Forum|Forum|6 years ago
March 12, 2020
2 replies
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My wife worked as part time for 2 months. Her colleagues told her that she does not need pay federal and SS tax. I entered her W-2 into the Turbotax. No difference. It seems it asks me pay all the federal tax and SS tax. Did I miss anything?

No place I can select or indicate as government employee (including school employee, funded by local tax money).

T

ThomasM125

I can think of no compensation for services provided that would be exempt from income tax, with the exception of combat pay for military members. Some forms of income may be exempt, such as social security and disability benefits, but virtually all income paid for services rendered would be taxable, no matter for what period of time the services were provided.

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A

AndkingAuthor

Thanks a lot, ThomasM25.

That is my understanding, or that might be reason that Turbotax does not have an option there to indicate that this is from government employment pay.

Only suspicious point in the W-2 from the local school district, it did not withhold any federal or social security tax. But it did withhold medicare tax. I do not the reasons behind. Any thoughts?

T

ThomasM125

Certain types of income are exempt from social security tax, such as some forms of clergy pay, so there may be some special exemption. Medicare is different from social security, so just because your're exempt from social security tax does not mean you would be exempt from medicare.

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Anonymous

if she got a w-2 and the social security and/or medicare wage boxes show $0 there no need to pay those taxes.

however if by W-2 you mean 1099-Misc, then yes she is subject to social security and medicare taxes if the amount is over $400

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AndkingAuthor

Hackitoff and others, Thank you all for the good answers. I learned something very good from you. Last question, she got the W-2 with $0 social security and $0 federal. My wife and I file the jointly 1040. How can I indicate her part time income is from school district and no need to pay federal and social security? I have been use Turbotax for about 5 years. I never know this issue. If you could point out where to enter correct in Turbotax, it will save some money for my wife. She will smile.

Next step, I need to correct last year's filing. My wife also have some part time income from school. I reported it as regular income. Turbotax calculated the normal way. I paid more to Uncle Sam.

VictoriaD75

Report the W-2 as presented. You must still pay Federal income tax on it. It is still included in regular income. You should not need to amend if you reported the W-2 as received. Box 1 income should be included in ordinary income.

If boxes 3-6 are blank or have $0, then she was exempt from FICA taxes, which are Social Security and Medicare. This does not need to be separately reported. You need only enter the information as it looks on your document.

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