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Taxes for seasonal employees: your complete how-to guide

By Erin Kahn
Jan 05, 2024

A seasonal job is a temporary gig that can last anywhere from three to eight months, depending on the type of work, the company, and the season. Jobs like holiday retail positions, camp counselors, lifeguards, and holiday mail delivery drivers are examples of seasonal work.

While seasonal jobs are a great temporary gig (and an important part of our economy), even these types of workers may need to pay taxes. If you’re a seasonal worker, we’ve got you covered with everything you need to know about filing and paying taxes.

1. Do I need to file taxes for a seasonal job?

Yes, even though seasonal work is short-term, you must file taxes if you're under 65, filing as a single taxpayer, and your income is more than the standard deduction. If someone else claims you as a dependent, you need to file your own return if you earned more than the income threshold to be claimed as a dependent during your seasonal employment.

2. Do I need to fill out a W-4 for a seasonal job?

Yes, for any job, seasonal or full-time, you must fill out a W-4. This form helps your employer report your income to the IRS and determines how much money should be withheld from your paycheck for taxes. Filling out a W-4 doesn't necessarily mean you will owe taxes.

3. What is a tax-exempt employee?

When you fill out a W-4, you can claim tax exemption, meaning your employer won't withhold federal income taxes from your paycheck. If you choose tax-exempt status, you'll be responsible for paying any taxes owed. Each state may have different rules, so you might need to fill out another form as well.

4. How can I claim tax exemption on my W-4?

You can claim tax exemption if you received a refund of all federal income tax withheld from your wages last year (because you owed $0 for taxes) and expect to be refunded all your federal income tax again this year. If you make less than the standard deduction and claim tax exemption, you might not need to file a tax return.

5. Do taxes have to be withheld from my paycheck if I only work one season?

Employers are required to withhold money for income taxes and FICA from your paycheck. For seasonal employees, the part-year withholding method is used if you work less than 245 days (about 8 months) during a calendar year.

6. Do I have to report tips from my seasonal job?

Yes, if you receive tips at your job, you need to report them as part of your income. If you earn $20 or more in tips in a month, the IRS requires you to include that on your return. Keeping a daily log of cash tips is a huge life-saver for this reason.