You do not "file as tax exempt." There is no place on a tax return form to say you are exempt. If you are someone else's dependent then your federal standard deduction may be less than the usual amount for a person filing single. And...your state's tax laws may require you to pay tax even if you do not owe the IRS. Saying that you are "exempt" could put you at risk of owing the state at tax time, even if you will not owe the IRS. If you have more withheld than your tax liability, you will get it back by filing a tax return and receiving a refund.
A tax return is the Form 1040 that you file/send in to the IRS. The money you get back is a refund--not a return. You get a refund if the amount withheld was more than your tax liability.
You are asking if you should say on your W-4 for the employer that you are exempt. No. Do not say you are exempt, even if you are unlikely to owe tax or expect a refund. If your income is low, then the employer will not withhold federal tax, or will not withhold very much anyway.
You will still have to pay in to Social Security and Medicare, which will not be refunded to you. If you work as an independent contractor, instead of as a W-2 employee, you will pay self-employment tax for Social Security and Medicare.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
