<p>Nevermind I figured it out.</p>
<p>Actually I change that.</p>
<p>If I was considered exempt (from withholding), is that money mine or will I have to pay it back eventually? Like if I had federal taxes blocked, is that money that becomes my own, or is it just more money given up-front and nothing more (that needs to be given back for taxes when I eventually file)? My mom is telling me I have to give it back eventually but I thought that I am a full-time student, not an adult, so this perhaps does not apply to me? Am I misunderstanding something?</p>
<p>Is there any particular office in Penn that help us dealing with that stuff? The university has too many offices that I don't believe they don't have the one dealing with this.</p>
<p>Let me know if you know.</p>
<p>If you meet the two criteria for line 7 go for it. Otherwise, your mom is right.</p>
<p>In any case, the assumption behind line 7 is that you will have no federal tax liability in the coming year because you had none the prior year (that is, your federally taxable income was $0.00). If not you will owe it all in one lump come April 15th. There is a penalty for under withholding that would probably apply as well. (It pops up the year you get married and file jointly or get a big bonus but withholding $0 would probably trigger it too.)</p>
<p>Being a full time student does not affect your tax status (though you/your parents do get a lifetime learning credit and tuition deductions). </p>
<p>Welcome to the real world!</p>
<p>PS - If you eFile the day you get your W2 you'll probably get your refund check back in time for Spring Break!</p>