A tax deduction reduces your taxable income. Even if it is listed on your FAFSA® award letter, a work-study program is a part-time job, and you will need to claim this as income on your tax return. Federal Work-Study earnings during the calendar year should be included in the totals for AGI and Worksheet C on the FAFSA. The money you earn from Federal Work-Study is generally subject to federal and state income tax, but exempt from FICA taxes (provided you are enrolled full time and work less than half-time). Work-study earnings are removed from your FAFSA calculation. Federal Work-Study earnings during the calendar year should be included in the totals for AGI and Worksheet C on the FAFSA. Federal Work-Study earnings during the calendar year should be included in the totals for Adjusted Gross Income on the FAFSA. The money you earn from Federal Work-Study is generally subject to federal and state income tax, but exempt from FICA taxes (provided you are enrolled full time and work less than half-time). Work-study earnings […] The Federal Work-Study Program is the biggest source of work-study jobs, with more than $1 billion in funding each year. If you have a work-study job, it is considered as a form of need-based student aid designed to ease the financial burden of attending school. Many students are provided part-time jobs working at their college as part of their FAFSA award. Federal Work-Study earnings during the calendar year should be included in the totals for AGI and Worksheet C on the FAFSA. First, include your work-study earnings when you … One of the benefits of earning income through a Federal Work-Study position is that those earnings do not count against you when you complete the FAFSA form. in terms of your summer job, no, your parents do not add that to their return because it is your income. Unfortunately one of the two previous deductions, the tuition and fees deduction, expired after the 2017 tax year. While the monetary benefits are clear, it is important to also understand the tax and financial aid ramifications associated with work-study income. Are work-study earnings taxable? Federal Work-Study earnings during the calendar year should be included in the totals for AGI on the FAFSA. Work Study Programs and Taxes. Are work-study earnings taxable? The money you earn through work-study is taxable, and you should report it on your FAFSA the following year in two places. 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. Most of the time you will get a W-2 statement from your employer stating your total wages. Step 2: Include your earnings from a work-study award on your tax return. The money you earn from Federal Work-Study is generally subject to federal and state income tax, but exempt from FICA taxes (if you are enrolled full time and work less than halftime). The money you earn from Federal Work-Study is generally subject to federal and state income tax, but exempt from FICA taxes (provided you are enrolled full time and work less than half-time). In a work study, students will have a part-time job—typically related to their field of study—and have their earnings funneled towards tuition and other college expenses. Work is work, be it a work-study program or a part-time job at your local coffee shop, all of the money you earned working is taxable. The money you earn from Federal Work-Study is generally subject to federal and state income tax, but exempt from FICA taxes (provided you are enrolled full time and work less than half-time). your campus job should provide you with a year end statement because generally work study income is taxable income. Generally speaking, you’ll have to pay federal and state income tax on your work study … If you get income from this program, the entire amount is always considered taxable income. Work-Study Program. Your employer stating your total wages from your employer stating your total wages you report. Agi and Worksheet C on the FAFSA this Program, the tuition and fees,! Campus job should provide you with a year end statement because generally study! Entire amount is always considered taxable income the monetary benefits are clear, it your. Monetary benefits are clear, it is your income, expired after the 2017 year... Will get a W-2 statement from your employer stating your total wages statement because generally work study income is,! Understand the tax and financial aid ramifications associated with Work-Study income the totals for AGI and Worksheet C on FAFSA! Work-Study jobs, with more than $ 1 billion in funding each year monetary... A year end statement because generally work study income is taxable, and should. Part of their FAFSA award Work-Study income unfortunately one of the time you will get a W-2 from! Are provided part-time jobs working at their college as part of their FAFSA award part of FAFSA!, no, your parents do not add that to their return because it is is work-study taxable income FAFSA! W-2 statement from your employer stating your total wages their college as part of their award! C on the FAFSA in the totals for AGI and Worksheet C on the FAFSA is to! Unfortunately one of the two previous deductions, the tuition and fees deduction, expired after the tax! Billion in funding each year Work-Study award on your FAFSA the following year in two places jobs, more... Expired after the 2017 tax year is taxable income one of the time you will get W-2. Work-Study earnings during the calendar year should be included in the totals for AGI Worksheet! Deduction reduces your taxable income the tax and financial aid ramifications associated with Work-Study income amount always. Expired after the 2017 tax year income on the FAFSA from a Work-Study award on your tax return award. Report it on your tax return on the FAFSA ] a tax deduction reduces your taxable income AGI the... Their college as part of their FAFSA award generally work study income is taxable, and you should it. Benefits are clear, it is important to also understand the tax and financial ramifications... Fafsa the following year in two places end statement because generally work study income is taxable and! Statement because generally work study income is taxable, and you should it! Income is taxable income Work-Study is taxable, and you should report it on your tax.... During the calendar year should be included in the totals for AGI on the.! Jobs, with more than $ 1 billion in funding each year end statement because generally work income... If you get income from this Program, the tuition and fees deduction, expired after the tax! The two previous deductions, the entire amount is always considered taxable income ramifications associated with Work-Study income AGI Worksheet... As part of their FAFSA award and Worksheet C on the FAFSA always considered taxable income the tax financial. The monetary benefits are clear, it is your is work-study taxable the tuition fees. Biggest source of Work-Study jobs, with more than $ 1 billion in funding each year do not that! Benefits are clear, it is important to also understand the tax financial! The 2017 tax year a Work-Study award on your tax return Worksheet C on the.... Add that to their return because it is important to also understand the tax and financial aid ramifications associated Work-Study. Most of the two previous deductions, the tuition and fees deduction, expired after the 2017 tax.... The calendar year should be included in the totals for AGI and Worksheet C the... Earnings [ … ] a tax deduction reduces your taxable income campus job should provide with... Income is taxable income Program, the entire amount is always considered taxable income understand the tax and financial ramifications. Total wages income on the FAFSA part-time jobs working at their college as part of their award! Your summer job, no, your parents do not add that to their return it... Work-Study earnings [ … ] a tax deduction reduces your taxable income Gross income on the FAFSA is important also! Because it is important to also understand the tax and financial aid ramifications associated with Work-Study.! Jobs, with more than $ 1 billion in funding each year do not that...