Frequently Asked Questions

Can students claim exemptions on their taxes and under what conditions?

Students can indeed claim exemptions on their taxes under certain conditions. If a student has a job, they may not always be exempt. However, if the job is seasonal, such as during summer or winter break, they may be able to claim exempt if the position was part-time. Even if the student worked part-time throughout the entire school year, they may still be able to file as exempt. If the parents of the student can claim their child as a dependent, then the student may be able to indicate zero allowances on their tax forms if they remain a dependent of their parents. On the other hand, if a student is not a dependent but is a working student, they can claim two allowances as a single taxpayer would. This is because the more allowances you claim, the less income tax will be taken out of your paycheck. It's important to note that there are only a few instances in which a taxpayer can file exempt. These include situations where you owed no taxes in the previous tax year and received a refund for federal income tax that was withheld, or if you have no tax liability for the current year.