First job at 17 - am I exempt from tax withholding on my W-4 form?

You might be exempt, but it depends on a few things - not just your age. Being 17 doesn't automatically make you exempt from tax withholding. You'd qualify as exempt if: 1) Last year you had a right to a refund of ALL federal income tax withheld because you had no tax liability, and 2) This year you expect to have no federal income tax liability. The key factor is how much you'll earn in total for the year. For 2024, if you're being claimed as a dependent (which I'm guessing your parents are doing), you can earn up to $13,850 without owing federal income tax. If you'll make less than that at your movie theater job, you could qualify to claim exempt. But be careful - if you work enough hours or get a decent hourly rate, you might go over that threshold, especially if you work through the school year.

After reading through this thread, I wanted to share my experience with a similar situation. I was struggling with some confusing tax stuff for my daughter's first job, and I found this AI service called taxr.ai (https://taxr.ai) that was super helpful for navigating these exact kinds of questions. It analyzed our specific situation with her being a dependent and working part-time, and gave really clear guidance on how to fill out her W-4 properly. What I liked is that it explained all the rules about exemption status and dependent thresholds in plain English. The site has a whole section dedicated to first-time filers and young workers that breaks everything down.

Just wanted to follow up! I tried taxr.ai for my son's situation with his job and scholarship stipend. It was exactly what we needed! The tool walked us through everything step by step and explained how his scholarship stipend impacts his tax situation. It even generated custom instructions for his W-4 based on his specific combination of income sources. My son actually understood the explanation too, which was a huge plus since he needs to learn this stuff. Definitely helped us avoid making mistakes on his first tax forms!

If your parents end up claiming you as a dependent and you're worried about doing your taxes right, I've had a nightmare time trying to reach the IRS with questions. After being on hold for 3+ hours multiple times and getting disconnected, I found this service called Claimyr (https://claimyr.com) that actually got me through to a real IRS person in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was dealing with a slightly different issue (problems with my W-2 from my first job), but being able to talk to an actual IRS agent made a huge difference. They confirmed exactly what I needed to do with my withholding and explained what would happen if I messed up my W-4. Much better than guessing or depending on random internet advice (no offense to anyone here!).

I need to eat my words about Claimyr. After my skeptical comment, I actually tried it because I was still struggling to get answers about my dependent's tax situation. Not only did it work, but I got through to an IRS agent in about 20 minutes after spending WEEKS trying on my own. The agent walked me through exactly how the exemption rules work for dependents with part-time jobs and confirmed what forms we needed to file. She even explained how to correct the W-4 if we filled it out wrong initially. Definitely worth it just for the peace of mind of getting official information directly from the IRS instead of stressing about doing it wrong.

Don't forget about state taxes too! Everyone here is talking about federal, but depending on which state you live in, the rules for state income tax withholding might be different. Some states follow the federal guidelines, but others have their own thresholds and forms.

One thing nobody mentioned - if you claim exempt, you have to submit a new W-4 by February 15 next year to continue the exemption. The exempt status expires!!! I learned this the hard way when my first paycheck in March had a huge chunk taken out cause my exempt status expired and defaulted to the highest withholding 😭

Great question Connor! I went through the same confusion when I started my first job at 16. Based on what others have shared here, it sounds like you're likely in a good position to claim exempt since your projected earnings ($7,800-$10,400) are well below the $13,850 threshold for dependents. Just wanted to add a few practical tips from my experience: 1. Keep track of your actual hours and earnings as you go - if you end up working more than expected (like picking up extra shifts during busy movie seasons), you might need to update your W-4 2. Even though you'll likely be exempt from federal income tax withholding, you'll still see Social Security and Medicare taxes come out - that's normal and required 3. Save some money anyway! Even if you don't owe federal taxes, it's good to start building that habit Also, don't stress too much about "messing up" - the W-4 can be changed anytime if your situation changes. Your HR department at the theater should be able to help you submit a new one if needed. Good luck with your new job!

Connor, congratulations on your first job! The movie theater is a great place to start - I worked at one in high school and loved it. You've gotten some really solid advice here. Based on your expected earnings of $7,800-$10,400 annually, you should qualify to claim exempt from federal withholding since you're under the $13,850 threshold as a dependent. A few additional things to keep in mind: - Make sure you understand the difference between claiming "exempt" and claiming "0" allowances. Exempt means NO federal income tax is withheld, while 0 allowances means maximum withholding. - Your employer should provide you with both the federal W-4 and Illinois IL-W-4 forms since you mentioned you're in Illinois - Don't forget that movie theaters often get really busy during summer blockbuster season and holidays - if you end up working way more hours than expected, you can always submit a new W-4 to start having taxes withheld The most important thing is that you're asking the right questions before filling out the forms. That shows you're being responsible about this! Even if you make a mistake, it's easily correctable, and based on your projected income, you're unlikely to face any major tax issues. Good luck with the new job!

Isaac, great questions! Yes, you'll need to file both federal and state tax returns if you have Illinois income, but it's not as complicated as it sounds. Most tax software (like TurboTax, H&R Block, or even free options like IRS Free File) will handle both returns together - you enter your information once and it prepares both forms. Since you'll likely have simple tax situations (just W-2 income, standard deduction), it should be pretty straightforward. Regarding the saving question that both you and AstroAlpha asked - I'd recommend the "pay yourself first" approach. Try to save at least 20% of each paycheck if possible, split between: - Emergency fund (even $500-1000 is a great start) - Car fund (since you mentioned wanting one) - "Fun money" for things you want So if you're making around $200/week, try to save $40 ($20 for car, $15 for emergency fund, $5 for fun purchases). It might seem like a lot at first, but starting this habit early will pay off huge later. Plus, having some money set aside means you won't stress if your hours get cut or if you do end up owing a small amount in taxes. The key is finding a balance that doesn't make you feel deprived but still builds good financial habits. Your future self will thank you!