How to Claim Exempt From Federal Withholding Tax

How to Claim Exempt From Federal Withholding Tax
If you don't expect to owe taxes, you can exempt yourself from withholding tax.

Step 1

Make sure you qualify for the exemption. If you received a refund for the entire amount of your federal withholding amount for the previous tax year, and you expect to receive a refund for the entire amount of your federal withholding for the current tax year, you may be able to claim the exemption. If your income is more than $950 (and over $300 of that amount is unearned income, such as interest on bank accounts) and another person can claim you as a dependent, you can't claim the exemption.

Step 2

Obtain a copy of a W-4 form from your employer. Alternately, you can download a copy from the Internal Revenue Service website (see Resources) and then print a copy of the form.

Step 3

Enter your name, address, social security number, filing status and if your last name differs from that shown on your social security card in the appropriate spaces on the W-4 form. Write "exempt" on line 7 to claim your exemption from federal tax.

Step 4

Sign and date the W-4 form and turn it in to your employer's payroll department so your payroll withholding can be adjusted.