Presentation on theme: "Work Study Employment Kim Matison and Leanne Foster Financial Aid/Human Resources March 10, 2009."— Presentation transcript:
Work Study Employment Kim Matison and Leanne Foster Financial Aid/Human Resources March 10, 2009
What is Work Study Employment? The Work Study Program is designed to provide financial assistance to eligible college students by promoting part-time employment Funding for work study comes from the federal and state government
How Do I Know If I Qualify for Work Study Jobs? Apply for financial aid early! Application steps are on www.tacomacc.eduwww.tacomacc.edu Indicate interest in work study on your FAFSA If we are able to award you work study, it will appear on your award letter. If not, come to the Financial Aid office and place your name on the waiting list
What is the benefit of a work study job? In addition to gaining valuable work experience, work study earnings are not included in calculating financial aid eligibility for the upcoming year.
More Benefits! Part-time employment while attending college Develop job skills and job experience Learn to work cooperatively in an employment environment Practice what you’re learning in college in a job setting to prepare you for post college employment
If I am “awarded,” how much can I earn? A typical award is $1,500 per quarter.
How am I paid my Work Study Award? A work study award is a job and awardees are paid wages for hours worked
Are my work study wages taxed? It depends! Students who receive an award are subject to federal income tax withholding; however, students do not pay tax for social security and medicare unless working in the summer
How are my wages reported and do I need to file a tax return? Student wages are reported on a form W-2 Students may fall beneath the filing requirement; however, many students will want to file (form 1040A or 1040) to claim the earned income credit. The earned income credit cannot be claimed on the 1040EZ
What is the earned income credit? The IRS offers a credit back to certain individuals and the amount of the credit can exceed the amount of withholding for certain individuals Use the Earned Income Assistant at IRS Earned Income Credit AssistantIRS Earned Income Credit Assistant
Earned Income Tax Credit EITC Thresholds and Tax Law Updates Tax Year 2008 Earned income and adjusted gross income (AGI) must each be less than: Earned income $38,646 ($41,646 married filing jointly) with two or more qualifying children; $33,995 ($36,995 married filing jointly) with one qualifying child; $12,880 ($15,880 married filing jointly) with no qualifying children. Tax Year 2008 maximum credit: $4,824 with two or more qualifying children; $2,917 with one qualifying child; $438 with no qualifying children.
Does the Earned Income Credit jeopardize my right to certain benefits? The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
Who should I contact if I have more questions? Visit our website at www.tacomacc.eduwww.tacomacc.edu Select “Ways To Pay” (green box at top of the page) Select “Financial Aid”