Should i file student exempt on my w-4 form?

Question

I've read alot of the other w-4 related questions but I'm still a bit confused.

So I am a single dependent student working a summer job which pays about $420-450 a week for 12 weeks. I hadn’t worked during the last school year but will mostly likely be working a lot the coming year. I’ve read on several sites that in order to claim EXEMPT you cannot make more than $5150 or so. My supervisor said something along the lines of “as long as you don’t work all year round or if you do, make less than $14,000, than you can claim student exempt on your W-4 form”. I assume that my supervisor is wrong, but either way should I be filing exempt on my W-4 if I will most likely be working during the school year and making more money? And people tell me that I will get the money back in the end when I file taxes? so what should i do? thanks.

Answer 1

There is no such thing as "student exempt" - there is exempt or not exempt, and it has nothing to do with being a student.  And your supervisor clearly doesn't know what he or she is talking about re W-4's.

For 2008 the amount you can earn without owing taxes is $5450, assuming that social security and medicare are deducted from your checks.  

If you will be working at ALL this year other than the summer job, you'll probably be over the limit, and should claim single/zero allowances on your W-4.  If too much is withheld you'll get any extra back when you file your return next year.

Answer 2

You only should file exempt if you are not going to have any tax liability at the end of the year.  If you are the dependent of someone else that would mean that any income greater than $5,450 will give you some tax liability.  The safest thing for you to do is file a W-4 with Single and one allowance.  They will take very little or nothing out.  If you go well above the $5,450 in earnings the withholding will adjust for that and you will be fine at the end of the year.  If you do have more withheld than you tax liability you will get a refund of the difference.