How the part-time job earnings calculator works
Pay is hours times wage. The calculator multiplies your wage by your weekly hours and the weeks you work each semester, adds summer work, and subtracts the tax share you enter:
Per semester = wage × hours per week × weeks
To compare a scholarship, it divides the award by your take-home pay per hour. That's how many hours you'd have to work to end up with the same money.
The tax rate is your own estimate. How much is withheld depends on your income, your state and the form you file with your employer. Many students who earn little get some or all of it back when they file a tax return.
Scholarships and taxes
Scholarship money used for tuition, required fees, and books, supplies and equipment your courses require is generally tax-free if you're working toward a degree. Money used for room, board or travel is taxable. (IRS Tax Topic 421) The comparison above treats the scholarship as tax-free, which fits the common case of an award paid toward tuition.
Worked example
You earn $15 an hour working 12 hours a week for two 15-week semesters. That's $180 a week and $2,700 a semester.
Over the summer you work 30 hours a week for 10 weeks, which adds $4,500. Your year totals $9,900 before taxes. With 10% withheld, you take home $8,910.
After taxes you keep $13.50 an hour, so a $2,500 scholarship equals about 185 hours of work. At 12 hours a week, that's more than 15 weeks, or a whole semester of shifts.
Common questions
How many hours should a student work?
There's no single right number. Think about your class schedule, study time and commute. Try the calculator at a few different hours per week to see what each extra shift adds, then decide if it's worth the time.
Do I pay taxes on a part-time job?
Your employer may withhold federal income tax, Social Security and Medicare, plus state tax in many states. If you earn little, you may get much of the income tax back when you file. Enter your best estimate of what comes out of each check.
Are scholarships taxed?
Scholarships used for tuition, required fees and required course materials are generally tax-free for degree students. Amounts used for room, board and travel are taxable income, according to IRS Tax Topic 421.
Is Federal Work-Study different from a regular job?
Work-Study is part of your financial aid offer. You still earn an hourly wage for hours you work, and you're paid as you go, not in a lump sum. The math in this calculator works the same way for a Work-Study job.
Why compare a scholarship to hours of work?
It puts the award in terms you feel. If an application takes three hours and the award equals 185 hours of work, even a small chance of winning can be worth the time. The scholarship worth-it calculator runs that math.