Is my income (through federal grant) exempt from federal income tax?

I currently am employed part-time by a professor at a local univeristy. She does a lot of domestic and overseas humanitarian work and gets Federal grants for her work. I am paid through this federal grant. I have noticed on my W-2 that absolutely NO federal taxes were taken out of my income. State and local taxes were taken out. Am I exempt from federal taxes because of my income source? Although I am paid with money from the federal grant, the checks are actually cut by the University. It is a public university, and I can't figure out why else federal taxes wouldn't be withheld. I am single, and I'm filing a 1040-EZ. Hmmm....I wonder...Could I possibly not owe any? I'm still claimed as dependent on my parents' taxes, and although I work full-time and made $12,000 at that job, I only cleared $3,000 at my part-time job that I am wondering about.

Public Comments

1. If this is a work-study program, you wouldn't be subject to paying social security or medicare. But in any case, if you make over $5350 if you are a dependent, or $8750 if you aren't, then you would have to file a federal return an most likely would owe some income tax. If your income is lower that that for the year, they wouldn't have taken any out because you wouldn't owe any. Is it possible that you filed your W-4 as exempt? That only means that they wouldn't take out taxes, it doesn't make you exempt from owing any.