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June 6, 2019
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Daughter graduated this year. When she started they told her she didn't have to pay taxes because she was a student. Is part of her income exempt? Or will she owe?

  • June 6, 2019
  • 2 replies
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She graduated in June and turned 18 in August.  The have not begun taking taxes out of her check.  We will be claiming her for the last time on our own taxes.  So I'm a little worried about her owing.

Best answer by Hal_Al

Students are not exempt from paying tax or withholding. When they say “she didn't have to pay taxes because she was a student” what they really mean is she is so unlikely to owe tax, that we’re not going to bother to withhold. She should fill out a new W-4 at work. Even if they are not withholding federal and state income tax, they should be withholding social security & medicare (FICA), unless “they” are a state or local government agency or school.

2 replies

DoninGA
Employee
June 6, 2019
Is she an employee who will receive a W-2?  If so, will her earned income for 2017 be greater than $6,350?
Hal_Al
Hal_AlAnswer
Employee
June 6, 2019

Students are not exempt from paying tax or withholding. When they say “she didn't have to pay taxes because she was a student” what they really mean is she is so unlikely to owe tax, that we’re not going to bother to withhold. She should fill out a new W-4 at work. Even if they are not withholding federal and state income tax, they should be withholding social security & medicare (FICA), unless “they” are a state or local government agency or school.