Summer Job Alert New Video Now Available Explaining How Kids and Students Can Correctly Complete a W-4 Form

One thing I continually notice is that most kids who work are incorrectly having federal and state income taxes withheld from their wages. Please note that a working child will generally owe no federal income taxes unless wages earned exceed $6,300 (in 2015) and/or investment income exceeds $350. Needless to say, most of the kids are getting back all the federal and state income taxes withheld during the year. By claiming "exempt", these kids avoid having federal income taxes withheld, which gives them more of their paycheck sooner, and also avoids the costs and headaches of filing a federal income tax return to get back those taxes that were unnecessarily withheld.