Filing for exempt at 16??

Question

ok well i started my first work and im really confused about all this taxes thing. i filed for exempt but im not sure if its the right thing to do cause a friend of mine said they charged her $300 at the end of the year. so i dunno if my parents can claim me or just leave it at that. can someone help me out plz

Answer 1

Are you going to make more than $5,450 in 2008?  If so, you will owe some tax.  When you see that you are going to make more than this amount, you should change your W-4 to have taxes taken out.  I recommend you change it to "single" and "0" allowances at that point.  The "0" means that your parents will claim you, which they will.

But for now, you are OK and you dont have to change anything.

Answer 2

If your friend filed as exempt and made enough to owe taxes, then yes she'd have had to pay them at the end of the year.

If you expect your total gross earnings from all sources to be under $5850 for the year, then exempt is ok.  Otherwise file as single, zero allowances.

Answer 3

If you are referring to filling out a w2, then just put "0" and "0" in the two spots, sign it and give it to your employer.

And yes, your parents will claim you.

And no, you are not exempt from taxation.