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4 Answers

Do I have to pay taxes on my 2 month internship?

Asked by: pmitchem 751 views YA Discussion

Hello everyone,

I am a resident of Florida and I am doing a summer internship in Miami. My question is: do I have to file taxes for this paid internship? I am receiving about $ 2000 total. My checks say “subcontractor” at the bottom. I’m not sure what that means. Any help would be greatly appreciated. Thank you :)

4 Answers

  1. Quick Answers on Jul 02, 2012 Reply

    It means your payer is a lying, cheating payer.

    “Internship” means you do not have any experience, must be supervised etc. Interns are supposed to be paid on a W-2 and have any required taxes withheld and some of those are matched by the employer.

    “contractor” (and “sub” doesn’t change this) means you ARE experienced, that you do NOT need supervision, tht you are self-employed. He’s planning to have you report and pay all taxes yourself, including some of his. He had you fill out a W-9 and plans to issue you a 1099-Misc. if this is your only income for the year, you still have to file. The SE tax is $ 246.

    If you finish the internship and then file an SS-8, you can fight this (and lose your resume reference). You’d still owe the $ 113 he was supposed to withhold.

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  2. Judy on Jul 02, 2012 Reply

    An intern is almost never legally classified as a subcontractor, so it almost surely means your employer is triyng to cheat you by having you pay tax that he should be paying.

    That said, your choices are to let it stand, or file form SS-8 with the IRS asking for a determination of whether you’re an employee. If you let it stand, you’ll file a tax return with a schedule C and pay around $ 246. With the SS-8. you’d owe around $ 113.

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  3. tro on Jul 02, 2012 Reply

    you are being paid as an independent contractor, you will report this income on Sch C and yes, if your ‘net’ amount on Sch C is $ 400 or more you will file Sch SE, and calculate your self employment tax

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  4. Lynne on Jul 03, 2012 Reply

    As others have said, you are being paid as a subcontractor even though you probably should not be.

    However, being practical about it, the point of a summer internship is generally to get work experience, build contacts and hopefully get a good reference. So it is very unlikely that you would now fill out a SS-8 to report your employer to the IRS.

    Paying college students as a subcontractors is extremely common even if not right. You will receive a 1099 MISC next January instead of receiving a W-2 as an employee would. You will need to file a tax return and will need a schedule C to report your “business” income. I understand that you do not think you are a business but that is how you will report subcontractor income. You will then need to complete a SCH SE to pay your self employment tax. If this 2000 dollars is your only income, the self-employment tax will be all you need to pay. As others have pointed out, you should set aside about $ 250 for this.

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