Got a job? Never mind the teacher beware of the taxman
By Kay Bell • Bankrate.com

Congratulations on your part-time job. Too bad you have to share the money with Uncle Sam.

When you get your first paycheck, you'll discover the downside of making money: paying taxes. Through a system known as payroll withholding, federal and, where applicable, state taxes are taken out of your wages before you receive a dime. The missing money is deposited in an Internal Revenue Service (and in some cases, a state tax) account and credited to you when you file your return.

Speaking of tax return filing, what are the rules for young workers? It depends on your filing status, your age and your income. Generally, a young person who is claimed as a dependent on the folks' return also must file if earnings were more than the standard single filer's deduction amount. For 2003, that's $4,751 or more.

Even if you don't make enough for the IRS to demand a return, you may find it to your advantage to do file anyway. This is the case for many low-earning teens where an employer withheld taxes from summer paychecks. The only way to get a refund of that money is send in a 1040. Find out when you need to file and how to do it in our Tax basics.

Of course if you don't go back to school in the fall and keep earning money, Uncle Sam will keep wanting his share -- year after year after year.

-- Updated: Feb. 25, 2003