Kids Claiming Exempt on Their W4 Form

Seems that many high school and college aged kids are incorrectly having federal and state income taxes withheld from their wages. The IRS wants to help parents of working children avoid the headaches and costs of preparing tax returns for their kids who won’t earn enough to be taxed. All you need to do is have your child write the word “Exempt” below Line 4C of new the Form W-4 that is generally completed the first day of employment.