Here's how your summer internship income is taxed — and when you can expect a refund

As a college student, I have many peers who are currently working summer jobs or internships. And many are wondering one thing when it comes to their earnings: How will they play a role in the next tax filing season? The short answer is it depends on how much one's income adds up to for the entire year.

Below, Select breaks it down, digging into how summer internship income is taxed and why it might be worth it for summer interns to file a tax return next year, even if they're not expected to do so.

Summer interns (who are paid), just like an intern working during any other time of year, assume tax duties starting with their very first paycheck.

Typically, when one receives monetary compensation for work, that income is taxed at the federal, state and even local levels — there's a New York City tax for residents, for example.

On the federal level, wage and salary income is subject to three federal taxes: Income tax, Social Security tax and the Medicare tax. You likely see money taken out of every paycheck for these tax purposes.

When it comes to filing taxes next year for 2022, however, there are income requirements for filing a tax return, meaning you have to make a minimum amount of income in order to do so.

For example, in the 2021 tax year the minimum gross income required for single filers — likely to be the filing status for many of my college student peers — was $12,550 for those under age 65. That minimum threshold was also the same if you were single, under age 65 and someone else claimed you as a dependent.

So, let's take a look at where the average summer intern stands. With the national average hourly wage for 2022 internships in the U.S. shaking out to about $15 per hour, according to ZipRecruiter, and assuming a full-time summer intern puts in 40 hours per week for 10 weeks, we can estimate their total summer earnings to be about $6,000 before taxes. Assuming this summer internship salary accounts for most or all of their annual income, the average intern likely wouldn't make enough annually to have to file a tax return come 2023.

Even if the average intern owes nothing, however, it may still be a good idea to file anyway as you could potentially qualify for a tax refund, which is essentially reimbursement for a taxpayer who has overpaid their taxes, likely because their employer withheld too much from their paychecks. You may also qualify for tax credits, like American opportunity tax credit (for qualified college expenses) or the earned income tax credit (if you have qualifying dependents), which could further boost your tax refund.

According to Anil Melwani, a CPA and partner at accounting firm Tanton Grubman, many interns don't know how to get a tax refund — or that they even qualify for one.

If your annual gross income doesn't end up meeting the minimum amount required to file a tax return, you may still want to do it in 2023 so you can collect a tax refund on the earnings you made during your summer internship this year.

The information on your tax return, which includes your income, expenses and investments, helps to determine whether or not you're due a tax return and, if so, for how much. Those who have overpaid state and/or federal taxes in 2022 — or whose employers over-withheld taxes — can expect a tax refund for the amount overpaid once they file their tax return.

For the next tax filing season, typically mid-January through mid-April, keep in mind that there are services that can help you file a return. Tax filing software such as TurboTax and H&R Block offer tax estimators to help you calculate whether or not you'll get a refund, plus how much the estimated amount will be.

As you prepare to file your taxes next year, be on the lookout for a W-2 form, which will be sent in the mail by your employer and will show your total earnings in 2022 as well as the amount of taxes you have already paid.

Signing up for direct deposit during the tax filing process can also help ensure you receive your tax refund as quickly as possible.

Catch up on Select's in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.