Will working cost me aid?
Usually less than people fear. Here is how it works:
- The FAFSA looks two years back.The 2026–27 FAFSA uses your 2024 tax information. So what you earn this year shows up on the FAFSA you file about two years from now, not on your aid this year.
- Some of your income is protected.The formula sets aside part of a student’s earnings before it counts any. Small part-time earnings often change little. Bigger jumps in income can lower need-based aid like Pell.
- Federal Work-Study doesn’t count against you.Work-study earnings are not counted as income when your aid is figured.
- A big change?If your income dropped (you lost a job or hours), ask your financial aid office about a “professional judgment” review. Bring proof.
Not sure? Ask your aid office: “If I earn about this much, how might it affect my aid?” They can run it for you.
Federal Work-Study, in four lines
File the FAFSAIt’s the only way to be considered.
Check your aid offerWork-study is offered based on need and what your school has. It isn’t guaranteed.
Find the jobMost schools post work-study jobs. You apply and interview, like any job.
Get paid as you workIt’s a paycheck, not a credit on your bill, at most schools. Keep your grades up to keep it.
Side-hustle scams aimed at students
If you see any of these, stop. A real job never works this way.
A check, then “send some back”They send a check and ask you to send part of it on, or buy gift cards. The check bounces later and your bank wants the money back.
“Receive and reship packages”Often called quality control or delivery operations. The goods are usually bought with stolen cards.
Pay to start, or buy cryptoAny job that asks you to pay upfront, or buy cryptocurrency to get paid, is a scam.
Easy “tasks” for commissionRate products or click links, then deposit your own money to “unlock” earnings. The money is gone.
A surprise text or WhatsAppAn unexpected message offering you a job is almost always a scam.
Rush and secrecyPressure to decide today, or to keep it quiet.
Taxes on side money, in plain words
- It’s income, form or no form.Money from gigs, selling, tutoring, braiding hair, delivery apps or content counts, even if nobody sends you a tax form.
- You may get a 1099.A 1099-NEC is for work you did as a contractor. Payment apps and platforms may send a 1099-K. Keep them with your tax papers.
- Self-employment tax.If you make $400 or more in profit from self-employment in a year, you owe self-employment tax (Social Security and Medicare) and file Schedule SE. Nobody takes it out of your pay, so set money aside.
- Track your costs.Supplies, platform fees and some mileage can lower your profit. Keep receipts in one folder or a phone album.
- Big year?If you expect to owe $1,000 or more, the IRS expects estimated payments during the year (Form 1040-ES).
How much should I set aside?
An estimate only, for side income where no tax is taken out. Your real tax depends on your whole year. Your numbers stay on this device.
$0profit this year
$0self-employment tax
$0set aside each month
$0yours to spend each month
Self-employment tax here uses the IRS rate of 15.3% on 92.35% of profit. It leaves out income tax unless you add a guess, and it leaves out credits that may lower what you owe. Estimate only, not tax advice.
Building credit, safely
- Pay on time, every time.On-time payment matters most to most credit scores. Autopay at least the minimum.
- Use a small part of your limit.The share of your limit you use (your “utilization”) matters. Lower is better, and paying in full every month keeps it low and costs you no interest.
- Start simple.A student card, or a secured card where your deposit is your limit. Secured cards can have high fees, so compare, and ask if it reports to the credit bureaus.
- Under 21?A card company needs to see your own income, or a cosigner who is 21 or older.
- Debit and prepaid cards don’t build credit.They’re fine for spending, but they don’t report payments.
- Check your reports for free.AnnualCreditReport.com is the only official free site. Anything else asking for a card number to see your “free” report is selling something.
My first credit card checklist
0 of 9 done. Saved on this device only.
General information, not financial or tax advice. Rules change every year; confirm on irs.gov, studentaid.gov and consumerfinance.gov.