Under 18 and a dependant with a college account that makes money in interest. Do I file exempt on W4? or Not?

Question

I am under 18 and I am a dependant. I have a college savings account that makes money in interest. Do I file as exempt on my W4 for 2007?

Please help!! Thanks!

Answer 1

You may claim EXEMPT only if you received a full refund of all taxes withheld last year AND expect to have zero tax liability for the current tax year. If your income from wages exceeds $5,150 or if you have self employment income of more than $400 or if you have unearned income (such as the interest) in excess of $850 you are NOT exempt and will have at least some tax liability.