Money from this account can be used for college without penalty. Parents owning a sole proprietorship or a partnership with a spouse can hire their children and avoid withholding FICA if their child is under the age of 18. FUTA is not required to be withheld until the child reaches age 21. This exception from withholding does not apply if the parents own a corporation. Students Can Avoid Withholding on Summer Employment if Certain Conditions Exist.
Students can avoid withholding on summer employment if certain conditions exist.
First, the student must not have had any tax liability in 1999 and must not expect to have one in 2000. This website is intended to provide general information on many subjects, but is not intended to be exhaustive. Laws, regulations and administrative authorities vary from place to place and are continually changing, and their application and impact vary with the specific facts involved. Accordingly, the information provided on or made available through this website is not intended to be legal, accounting, tax, investment or other professional advice or services. Your use of information through this website is at your own risk.