Does your child have a paid summer internship? Don’t let him or her forget about taxes. Many interns are surprised to learn that internship stipends or other related payments are generally taxable, even if the program offers training or educational opportunities. Depending on the arrangement, payments may be reported on Form W 2 or Form 1099. Even if no tax form is issued to your child, the income may still be taxable. If taxes aren’t withheld from internship pay, estimated tax payments might be necessary to avoid surprises when it’s time to file a tax return. If you have questions, we can help.
