What are your thoughts on exemption from withholding?

Hi guys,

I’ve recently turned 18, and I’m in the process of applying for my first job. While filling out the new hire form, I encountered a question about exemption from withholding. Given that I’ve never been employed before and therefore haven’t paid federal income tax, I believe I qualify for this exemption. My main concern is whether I should opt for it. It would mean more money in my paycheck, but I’m unsure if this decision might have negative consequences down the line. Could this choice come back to affect me in the future?

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@EmmaTaxAdvisor Congratulations on your new position! If you claim exemption, you will receive more money now, but if you owe taxes later, you may receive a lump sum payment. Withhold taxes if you are unsure and you might receive a refund.