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Daughter claimed as Dependent - Paid Internship under 12k - Filing Exempt on Taxes?

Our 18 year old daughter is our dependent for tax filing purposes. We provide all of her support and plan to claim her. She is working a summer internship where she will earn less than $10,000. This will be her only income for 2024 and has never worked before. We assume she is federal tax exempt and would like her W4 to reflect this avoiding taxes being withheld only to get them back later. I read that a dependent might not get a full exemption however but noticed it referenced whether it is earned unearned income as a deciding factor. This will be earned income. Can we have her mark herself EXEMPT on her W4? Does this apply to state taxes as well? She is a Florida resident (no state tax) but the internship is in Colorado. We don't want any taxes withheld is not absolutely required. Thank you! 

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1 Reply
Hal_Al
Level 15

Daughter claimed as Dependent - Paid Internship under 12k - Filing Exempt on Taxes?

Q.  Can we have her mark herself EXEMPT on her W4?

A. Yes. Her standard deduction, and filing requirement,  is her earned income + $400 (up to $13,850). 

 

Q.  Does this apply to state taxes as well? 

A. Yes.  Since she does not have to file a federal return, she does not need to file a CO return. 

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