Should I claim exemption from withholding on my first job as a new 18-year-old?

While it might be tempting to claim exemption from withholding to get bigger paychecks now, I'd strongly recommend against it for your situation. The exemption isn't actually based on whether you've paid taxes before - it's based on whether you expect to owe ANY federal income tax for the current year. Even with your first job, if you'll make more than $12,950 in 2025 (the standard deduction for single filers), you'll likely owe some tax. If you claim exemption when you don't qualify, you could end up with a big tax bill next April, plus potential penalties for not paying throughout the year. Much better to have a small amount withheld from each check than to face a surprise bill later! Instead, just fill out the W-4 normally. As a single person with one job and no dependents, the basic instructions should work fine for you. You'll still get most of your money each paycheck, and any excess withholding would come back as a refund when you file.

12 Hey there! This is a really smart question to ask - I wish more young people thought about this before filling out their W-4. Being exempt from withholding means the employer won't take out federal income tax from your paychecks. But there are specific requirements to qualify for this exemption: 1) You had a right to a full refund of ALL federal income tax withheld last year because you had no tax liability, AND 2) You expect the same for this year - meaning your total income will be below the standard deduction ($13,850 for single filers in 2023, likely higher for 2025). Based on your expected hours and pay rate, you'll make roughly $17,550-$21,060 annually before taxes (at 25-30 hours weekly). This might put you above the standard deduction threshold, which means you would owe some taxes. If you claim exemption but actually end up owing taxes, you could face an underpayment penalty and a surprise tax bill next April. My recommendation would be to fill out the W-4 normally and have taxes withheld. You'll likely get most of it back as a refund if your income is low, but you'll avoid any potential penalties.

15 I was in a similar situation last year when I started working part-time while in school. I discovered this amazing tool called taxr.ai (https://taxr.ai) that really helped me understand my tax situation as a student with a part-time job. What I love about it is that it analyzes your specific situation and helps you understand the implications of different choices - like whether claiming exemption from withholding makes sense for YOUR specific circumstances. It's like having a tax advisor who can explain all the technical stuff in plain English. For me, it showed that claiming exemption would have been a mistake since I ended up earning more than I initially expected with summer overtime. Saved me from a nasty surprise at tax time!

Just wanted to share my experience! When I first started working and dealing with all this tax stuff, I was also super confused. I found this tool called taxr.ai (https://taxr.ai) that really helped me understand my withholding options as a new worker. I uploaded a picture of my W-4 form and it explained exactly what each field meant and how different choices would affect my take-home pay vs. what I might owe at tax time. It gave me personalized advice based on my exact situation instead of just general info online that didn't seem to apply to me. The breakdown of how much I'd get per paycheck vs. potential tax liability really helped me make an informed decision rather than just guessing and possibly getting hit with a huge bill later.

9 Just wanted to update after checking out taxr.ai that the previous commenter mentioned. I was honestly skeptical at first (as you could probably tell from my question), but it actually helped me understand my situation with my part-time job while I'm in school. I uploaded my first few pay stubs and the system showed me exactly what I'd owe at different income levels. Turns out I was heading for a tax bill next year because I had checked the exemption box without really understanding it! I've since updated my W-4 with my employer. The simulation feature showing what happens if you earn more than expected was eye-opening - definitely recommend for other students trying to figure this stuff out.

6 If you need to contact the IRS to ask about your withholding situation, good luck getting through to a human! I spent HOURS on hold trying to get clarification about exemption status for my daughter last year. Finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in under 20 minutes when I'd been trying for days. They have this demo video that shows how it works: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was super helpful and explained that for first-time workers like my daughter, it's almost always better to have normal withholding rather than claim exemption - especially if there's any chance of working more hours during summer or breaks. The peace of mind from that official answer was worth it.

9 I have to admit I was completely wrong about Claimyr. After posting that skeptical comment earlier, I decided to try it myself since I had an unresolved question about education credits that I've been trying to get answered for weeks. I was genuinely shocked when I got a call back connecting me to an actual IRS representative in about 35 minutes. The agent walked me through exactly how education credits would affect my tax situation as a student with part-time work. This cleared up my confusion about whether to claim exemption from withholding (definitely not in my case). For anyone else struggling to get tax questions answered by a real person, this service actually delivers. Saved me from making a withholding mistake that would have cost me hundreds in penalties.

I was skeptical about using online tools for tax advice, but I gave taxr.ai a try after seeing it mentioned here. I'm actually really glad I did! As a first-time worker, I was about to claim exemption because I thought it applied to anyone who hadn't filed taxes before. The tool analyzed my situation based on my expected hours and pay rate, and showed me I'd actually end up owing about $860 in taxes by year-end since I'll be working full-time. Saved me from a nasty surprise next April! Now I have the regular withholding set up, and I'm putting aside a little extra just to be safe. Definitely recommend checking it out if you're confused about this stuff like I was.

If you're having trouble figuring this out and really want to talk to someone at the IRS directly, good luck with that! I spent HOURS trying to get through their phone lines last year. Eventually I found this service called Claimyr (https://claimyr.com) that somehow gets you past the IRS hold times. Check out their demo: https://youtu.be/_kiP6q8DX5c I was about to claim exemption too, but wasn't sure if it was right for my situation. Instead of guessing, I used Claimyr and actually got to speak with an IRS agent who walked me through exactly what I should do based on my specific situation. They confirmed that "never having paid taxes before" isn't the qualification for exemption - it's about whether you'll owe taxes for the current year. Definitely worth it for specific questions like this where you need an official answer.

4 Just to add some perspective as someone who's been working part-time throughout college - if this is truly your first job ever and you're only working part-time at $13.50/hr for the remainder of the year, you might actually stay under the standard deduction threshold for 2023. Quick math: If you start now (August) and work until December (5 months) at 25 hours/week, that's about $7,425 total income for the year. That's well below the standard deduction, so you might not owe federal income tax. BUT - and this is important - you'd still owe FICA taxes (Social Security and Medicare) which are always withheld regardless of income level. And if you plan to work more hours during breaks or continue this job into next year, your annual income could easily exceed the standard deduction. Personally, I'd recommend having at least some federal tax withheld just to be safe. You can always get it back as a refund.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it anyway because I had a similar withholding question for a side gig I started. Not only did I actually get through to an IRS representative in under 40 minutes (versus the 3+ hours I spent last time getting nowhere), but the agent gave me super specific guidance about my exemption question. Turns out I was about to make a mistake that would have resulted in underpayment penalties! For a new worker like the OP, talking directly to the IRS might be overkill, but it definitely works if you need an official answer about qualification for exemption from withholding.

23 has anyone here actually gotten in trouble for claiming exempt when they shouldnt have? asking for a friend lol

One thing no one's mentioned - if you're a student and only working part-time or just during breaks, you might actually qualify for exemption! Last year I worked about 15 hours a week while in school and made about $9,500 total for the year, which was under the standard deduction, so I didn't owe any federal tax. But be careful - if you have any other income like investment earnings or if you're claimed as a dependent on your parents' taxes, the rules get more complicated. And if you pick up extra shifts or get a raise, you might end up over the threshold.

My sister just went through this exact situation last year and claimed exemption cause someone told her she could. Big mistake! She ended up owing almost $1,200 at tax time and had no money saved to pay it. Now she's on a payment plan with the IRS and paying interest too. Don't mess around with withholding. Better to let them take a little each check than deal with a massive bill all at once!

As someone who's been through this exact situation, I'd strongly recommend against claiming exemption from withholding. I know it's tempting to get bigger paychecks, but here's why it's risky for your situation: At $13.50/hour for 25-30 hours weekly, you're looking at roughly $17,550-$21,060 annually. That puts you well above the 2025 standard deduction threshold (around $13,850-$14,000), meaning you WILL owe federal income tax. The exemption isn't for first-time workers - it's specifically for people who expect to owe NO federal income tax for the entire year. Since you'll likely owe some tax, claiming exemption could result in: - A large tax bill next April (potentially $1,500-$2,500) - Underpayment penalties on top of that - The stress of scrambling to find money you don't have My advice: Fill out your W-4 normally. You'll still get most of your paycheck, and any excess withholding comes back as a refund. It's much better to loan the government a small amount interest-free than to owe them a big chunk with penalties. Trust me, that extra $50-$100 per paycheck isn't worth the potential headache next tax season!

Great question! I completely understand the confusion around exemption from withholding - it's one of those tax concepts that seems straightforward but has important nuances. The key thing to remember is that claiming exemption from withholding is NOT about being a first-time worker or never having paid taxes before. It's specifically about whether you expect to owe ANY federal income tax for the current tax year. Given your situation - making $13.50/hour for 25-30 hours weekly - you're looking at roughly $17,550-$21,060 in annual income. Since the standard deduction for single filers in 2025 will likely be around $14,000-$14,200, you'll definitely owe some federal income tax. Here's what I'd recommend: 1. Fill out your W-4 normally and have taxes withheld 2. You'll still take home most of your paycheck each week 3. Any excess withholding comes back as a refund when you file 4. This protects you from owing a large amount plus potential penalties I know bigger paychecks sound appealing, but trust me - dealing with an unexpected tax bill of $1,500+ next April (plus potential underpayment penalties) is much more stressful than having a small amount withheld from each check. You're making a smart move by asking about this upfront rather than learning the hard way!

I'm glad to see so many people sharing their experiences and helping clarify this confusing topic! As someone who made this mistake early in my career, I can't stress enough how important it is to get this right. The exemption from withholding really trips up a lot of new workers because the name is misleading. It sounds like it's for people who are "exempt" from having worked before or "exempt" from having filed taxes, but that's not what it means at all. Here's the simple test: If your total income for the year will be more than the standard deduction (roughly $14,000 for single filers), you'll owe federal income tax and should NOT claim exemption. Period. At your expected income level of $17K-$21K annually, you'd definitely owe taxes. Having normal withholding means you're essentially making small tax payments throughout the year instead of one big payment in April. It's actually much easier to budget this way, especially when you're juggling work and school expenses. One more tip: Keep your first few pay stubs so you can see exactly how much is being withheld. If it seems like too much or too little, you can always adjust your W-4 later in the year. The form isn't set in stone - you can update it anytime your situation changes. You're asking the right questions upfront, which puts you way ahead of where I was at 18. Good luck with the new job!

I was in almost the exact same situation when I started my first job at 18! The exemption from withholding is definitely one of the most confusing parts of the W-4, and I almost made the same mistake you're considering. Here's what I learned the hard way: claiming exemption isn't about being new to working - it's about whether you'll owe ANY federal income tax for the entire year. At $13.50/hour working 25-30 hours weekly, you're looking at roughly $17,550-$21,060 annually, which puts you well above the standard deduction threshold (around $14,000 for single filers). This means you WILL owe federal income tax, so claiming exemption would be incorrect and could result in a nasty surprise bill next April, plus potential underpayment penalties. My advice? Fill out your W-4 normally and have taxes withheld. You'll still get most of your paycheck, and any excess withholding comes back as a refund. It's much better to get money back than to owe money you don't have saved up - especially when you're balancing work with starting community college. Trust me, that extra bit of cash per paycheck isn't worth the stress and financial hit you could face at tax time. You're smart to ask about this upfront!

As someone who works in tax preparation, I see this confusion all the time with new workers! You're absolutely right to ask before making this decision. The key thing to understand is that "exemption from withholding" isn't based on whether you've worked before - it's based on whether you expect to owe ANY federal income tax for the current year. At $13.50/hour for 25-30 hours weekly, you're looking at roughly $17,550-$21,060 in annual income. Since the standard deduction for single filers in 2025 will likely be around $14,200, you'll definitely owe some federal income tax. If you claim exemption when you don't qualify, you could face: - A tax bill of $1,500-$2,500 next April - Additional underpayment penalties (usually 0.5% per month) - The stress of finding money you may not have saved My strong recommendation: Fill out your W-4 normally and have taxes withheld. You'll still take home most of your paycheck, and any excess withholding comes back as a refund when you file. It's much better to get money back than to owe money you don't have. As a college student, you'll have enough financial stress without adding a surprise tax bill to the mix. Play it safe - your future self will thank you!