W-2 tax withholding

[BSLPV]

Hi! Have a 19 year old child who will be working and making about $4k this year. She is planning to not have taxes withheld when completing her W-2. Reasoning is that she will not earn enough to owe and if taxes were taken out she'd have to file next year. Is our understanding correct? 

Thanks!

[KrisD15]

Yes, your understanding is correct.

A dependent with less that the Standard Deduction in earned income would not be required to file.

If  tax was withheld, they may want to file to get that tax refunded, therefore if you let the employer know that they will be exempt from paying federal taxes, they can have no federal taxes withheld and eliminate the need to file for a refund.