How should my teenage daughter fill out her W4? Confused about teen tax requirements

Tax preparer here! This is actually a great question that many parents face. For teenagers like your daughter, here's what you need to know: For federal income tax purposes, if your daughter will earn less than $12,950 (the standard deduction for 2025), she won't owe any federal income taxes. However, she will still have Social Security and Medicare taxes (FICA) withheld from her paycheck, which she cannot get back. As for the W4, if she expects to earn less than the standard deduction AND she had no tax liability last year, she can claim exemption from withholding. But she'll need to complete a new W4 by February 15, 2026, to maintain this exemption. And yes, it's actually good practice for her to file a tax return even if she's not required to. It teaches financial responsibility, and if any income tax was withheld, she'll get it back as a refund!

Just wanted to share! I was in the same boat with my son last year. After lots of research, I found this super helpful tool at https://taxr.ai that analyzes your specific situation. I uploaded a pic of his W4 and answered a few questions, and it gave us personalized guidance for his exact situation. It even explained which boxes to check on the W4 based on his expected income and dependent status. Helped us avoid having too much withheld while still staying compliant. Might be worth checking out!

Just wanted to update after trying the taxr.ai site mentioned above! It was actually really helpful for my teen's situation. I uploaded his first paystub and the tool immediately identified that Target was withholding too much federal tax considering his projected annual income. It walked us through filling out a new W4 with the right exemptions. The best part was it explained everything in plain language that even my 16-year-old could understand! He'll now be bringing home about $30 more per paycheck, which makes a big difference for him. Definitely worth checking out if you're confused about teen tax situations.

If you're still confused after filing the W4, I'd highly recommend using Claimyr (https://claimyr.com) to actually speak with an IRS agent directly. I used it after my daughter's employer messed up her withholding last year. I'd spent WEEKS trying to get through to the IRS with no luck, but Claimyr got me connected to an actual IRS rep in less than 20 minutes. They have a demo video here: https://youtu.be/_kiP6q8DX5c that shows how it works. The agent was able to confirm exactly how teen dependents should fill out their W4s and what our obligations were for filing. Honestly was a huge relief to get official answers instead of guessing.

Alright I need to apologize and eat my words about Claimyr. After struggling for 2 more days trying to get actual help from the IRS, I gave in and tried the service. Got connected to an IRS agent in about 15 minutes who explained EXACTLY how my teen should fill out her W4. Turns out since she'll make under the standard deduction, she qualifies for exemption from withholding on line 4(d) of the W4. BUT the agent emphasized she'll still have FICA taxes taken out no matter what. The agent also explained she should file a return next year anyway to get back any federal income tax that might get withheld. Seriously saved me hours of frustration!

Just a heads up from someone who's been through this - even if your teen is exempt from income tax, make sure they keep track of their earnings for Social Security purposes! My son didn't file for his first two years of working (he made under the threshold), but years later when we checked his Social Security earnings record, those years weren't credited. Having a record of work history can be beneficial for them later in life, even if no tax is owed.

My daughter started working at 16 and we didnt know what to do either! Pro tip: use tax software next year even if she doesnt technically need to file. My daughter filed using the free version of TurboTax and got back like $300 that had been withheld from her paychecks over the summer. The software walks you through everything and she actually learned alot about taxes. Its a good habit to start early!

One thing no one mentioned - check if your state has different rules! My son worked in New Jersey last year and even though he was exempt from federal withholding, NJ still required state income tax withholding and filing. He still got most of it back but we were surprised that the rules were different. Each state has its own minimum filing requirements that might be lower than federal.

This thread has been so helpful! I'm a CPA who works with a lot of families, and I just wanted to add one more consideration that often gets overlooked. Since your daughter is earning income from wages, she should also start thinking about opening her own savings account if she hasn't already. This is a great opportunity to teach her about setting aside money for taxes (even if she won't owe any this year), building an emergency fund, and maybe even starting to save for college. Also, make sure she keeps all her pay stubs and tax documents organized - it's a good habit to start early. Even though she likely won't owe federal taxes this year, having good records will make filing much easier and help if there are ever any questions about her earnings. The financial responsibility lessons she learns now will serve her well throughout her life!

Thanks everyone for all this great advice! As a parent of a teen who just started working, this has been incredibly educational. I had no idea about the distinction between federal income tax exemption and still having to pay FICA taxes - that's really important to understand. One thing I'm curious about that I haven't seen mentioned yet: if my daughter does claim exempt from federal withholding now, but then ends up earning more than expected (maybe picks up extra shifts during the holidays), can she submit a new W4 mid-year to start having taxes withheld again? I want to make sure we're not stuck with the initial decision if her income situation changes. Also, for those who mentioned filing a return even when not required - is there a deadline for doing this? Like, does she have to file by April 15th even if she doesn't owe anything, or is it more flexible since it's voluntary?

As someone who went through this exact situation with my nephew last year, I wanted to share a few practical tips that really helped us navigate the W4 confusion: First, don't stress too much about getting it "perfect" right away - you can always adjust! We initially had him claim exempt since he was making under $12,000, but when he picked up extra holiday shifts and his projected income went up, we just submitted a new W4 to start withholding a small amount. One thing that really helped was having him calculate his expected annual income based on his hourly rate and typical hours per week. This gave us a clearer picture of whether the exemption made sense. At $10k projected income, your daughter should definitely be fine claiming exempt from federal withholding. Also, I'd suggest having her set aside a small portion of each paycheck in a separate savings account - even though she won't owe federal income tax, it's great practice for when she's older and will have tax obligations. Plus it helps her understand the concept of "paying yourself first." The learning experience has been just as valuable as the money she's earning. She now understands the difference between gross and net pay, what FICA taxes are, and why tax planning matters. These are life skills that will serve her well!

I'm dealing with this exact same situation right now! My 16-year-old just got hired at a local grocery store and we're totally lost on the W4 too. Reading through all these responses has been incredibly helpful - I had no idea about the difference between being exempt from federal income tax vs still paying FICA taxes. One thing I'm wondering about that I haven't seen addressed yet - should we be concerned about her employer understanding teen tax rules? When we went in for her orientation, the HR person seemed unsure about how to handle a minor's W4 and kept saying "just put down what your parents tell you." I'm worried they might not be experienced with teenage workers and could give us bad advice. Also, has anyone had experience with teens working across state lines? We live right on the border and there are better job opportunities in the neighboring state. I'm curious if that would complicate things even more for her taxes next year. Thanks to everyone who's shared their experiences - this is exactly the kind of real-world advice we needed!

This whole thread has been such a lifesaver! I'm dealing with the exact same situation with my 17-year-old who just started at a local restaurant. After reading everyone's advice, I feel much more confident about having her claim exempt from federal withholding since she'll definitely make under $12,950 this year. One thing I wanted to add that might help other parents - I called our state's Department of Revenue directly to ask about teen filing requirements, and they were actually super helpful! Turns out our state has a really low filing threshold (like $1,200 for dependents), so even though she won't owe federal taxes, she'll still need to file state. But the good news is she'll get back almost everything that gets withheld. Also, for anyone worried about the W4 form itself - the IRS actually has a really good withholding calculator on their website that walks you through the whole process step by step. We used it to double-check our decision to claim exempt and it confirmed we were on the right track. Thanks again everyone for sharing your experiences - it's so much better getting advice from parents who've actually been through this rather than trying to decode tax websites alone!

Wow, this thread has been incredibly helpful! As a newcomer to this community and someone dealing with teenage tax questions for the first time, I'm amazed by how supportive and knowledgeable everyone is here. My 16-year-old just started working at a local bookstore, and I was completely overwhelmed trying to figure out the W4 situation. After reading through all these responses, I feel so much more confident! The explanation about the difference between federal income tax exemption and FICA taxes was particularly eye-opening - I had no idea those were separate things. I think we'll go with claiming exempt from federal withholding since she'll definitely be under the $12,950 threshold, but I'm definitely going to call our state's department of revenue like Tyrone suggested to understand the state-specific rules. One quick question for the group - has anyone dealt with a teen who might work seasonal jobs at different employers throughout the year? My daughter is thinking about picking up holiday work at a retail store in addition to her bookstore job. I'm wondering if that complicates the W4 situation at all, or if each employer handles withholding independently based on what she puts on their individual forms. Thanks so much to everyone who shared their experiences - this community is such a valuable resource for navigating these confusing tax situations!

Thank you all for this incredibly detailed and helpful discussion! As someone who's been lurking in this community for a while but never posted, I finally had to jump in because this is exactly what I needed to see. My 17-year-old son just got his first job at a local pizza place, and I've been stressing about the W4 for weeks. Reading through everyone's experiences has been so reassuring - especially learning that it's okay to start with claiming exempt and adjust later if needed. I had no idea you could submit a new W4 anytime during the year! The advice about keeping detailed records really resonates with me too. I think I'm going to help him set up a simple spreadsheet to track his earnings and maybe even have him save a small percentage of each paycheck like Sophia suggested. Even though he won't owe taxes, building those financial habits early seems so valuable. One thing that really stood out to me was Henry's point about filing a return even when not required - I never thought about the educational value of that. It sounds like going through the process, even with tax software, could be a great learning experience for him. Thanks to everyone who shared their real-world experiences. This community is such a great resource for parents navigating these confusing situations!

I'm so grateful to have found this discussion! My 16-year-old daughter just started working at a local coffee shop, and I've been completely lost on how to help her with her W4. Reading through everyone's experiences has given me so much clarity and confidence. What really struck me is how many parents are in the exact same boat - it's reassuring to know we're not alone in feeling overwhelmed by teenage tax situations! The distinction between federal income tax exemption and FICA taxes was a huge lightbulb moment for me. I had been telling my daughter she wouldn't pay any taxes at all, but now I understand she'll still have Social Security and Medicare taxes taken out regardless. Based on all the advice here, I think we'll have her claim exempt from federal withholding since she'll definitely make under $12,950 this year working part-time. But I'm definitely going to follow Tyrone's suggestion and call our state's Department of Revenue to understand the state-specific requirements. I also love the idea of using this as a teaching moment - having her track her earnings and maybe even file a return next year for the educational value. These are exactly the kind of life skills she needs to learn, and starting with her first job seems perfect. Thank you to everyone who shared their real experiences and practical advice. This community is such a wonderful resource for navigating these parenting challenges!

As a newcomer to this community, I just want to say how incredibly helpful this entire discussion has been! I'm dealing with the exact same situation - my 15-year-old just started working at a local retail store and I was completely confused about the W4 form. Reading through everyone's experiences has been so educational. I had no idea about the difference between federal income tax exemption and FICA taxes - I thought if she claimed exempt, she wouldn't pay any taxes at all! Now I understand she'll still have Social Security and Medicare taxes withheld no matter what. The practical advice about being able to submit a new W4 anytime during the year is also really reassuring. I was worried we'd be locked into whatever decision we made initially, but knowing we can adjust if her income situation changes takes a lot of pressure off. I'm definitely going to follow the suggestions here about having her track her earnings and maybe even file a return next year for the educational value. It seems like such a great opportunity to teach financial responsibility and help her understand how the tax system works. Thank you to everyone who shared their real-world experiences and took the time to explain things in plain language. This community is such a valuable resource for parents trying to navigate these confusing situations!

As a newcomer to this community, I have to say this thread has been absolutely invaluable! My 16-year-old just started her first job at a local movie theater, and I was completely lost when it came to helping her with the W4 form. What really helped me understand the situation was learning about the $12,950 standard deduction threshold - knowing that she can claim exempt from federal withholding if she'll earn less than that amount takes so much stress out of the decision. The clarification about FICA taxes still being withheld regardless was also crucial - I was mistakenly thinking "exempt" meant no taxes at all! I'm planning to use several of the suggestions from this thread: having her track her earnings in a simple spreadsheet, calling our state's Department of Revenue to understand state-specific filing requirements, and most importantly, treating this as a learning opportunity to teach her about financial responsibility. One question I have that I didn't see addressed - if she claims exempt now but then gets a second job later in the year (maybe summer work at a different place), should she claim exempt at both employers or be more conservative with the second W4? I want to make sure we don't accidentally under-withhold if her combined income approaches that $12,950 threshold. Thank you all for sharing your experiences so openly - this community is such a wonderful resource for parents navigating these milestone moments!