<p>D just started her first job! How should I advise her to fill out her W2?</p>
<p>Is she exempt? We claim her on our taxes and she had unearned income last year that she paid a small amount of tax on. It looks like she should put 1 but I'm not sure. She will probably earn 4,000 for 2008.</p>
<p>I told DS to claim 1 allowance for his summer job. You get taxed on each paycheck as if you will be getting paid at that rate for the entire year.</p>
<p>standrews...I'm not sure how my daughter completed her forms last year, but she had NO federal withholding taken out of her summer earnings...not a penny. She did have state income tax taken out, but not federal.</p>
<p>If she only has 4K in total income for '08 then she can claim exempt on her Federal form as she will owe no taxes even though she is a dependent on your return. For state it depends on if she would be taxed on the 4K.</p>
<p>Thanks! She will claim exempt.</p>
<p>Depends on whether she will owe tax again on her unearned income. If you have taxes taken out of her paycheck, she could avoid having to pay in when she files the return. I usually advise a kid to claim -0- and have the most taken out because for the young, it is much better to get it back at the end than to have to pay in even small amounts they might not have. Assuming, of course, that filing a return to get that amount back is not a burden. Sounds like she files anyway though. </p>
<p>It's also a good idea for a kid to learn how to file a return when it's easy like this. They can do it for free online.</p>
<p>Also make sure she has some taken out for state. Very few states won't tax $4000 of a dependent. Except of course, states with no income tax.</p>