How to Claim Exempt on a W-4 Form
When a company hires a new employee, that individual will be required to fill out a variety of forms that might include a health insurance questionnaire, a personal contact form, a 401(k) retirement plan form and, inevitably, tax forms. One of those tax forms is IRS Form W-4, which allows the employee to declare how many exemptions he intends to claim on his year-end tax return. The employer uses this information to calculate the amount of payroll taxes to be withheld from the employee's paycheck.
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Things You'll Need
- IRS Form W-4
- Internet access
- Phone access
- Tax or financial adviser (optional)
Instructions
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Know Your Tax Status
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1
Fill out a W-4 form when you are initially hired and before you receive your first paycheck. If you've already completed this form, you can ask to review it any time to verify that your information is correct. You can also file a new W-4 if your situation has changed -- for example, you've married, had a baby or adopted a child.
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2
Read the instructions for the W-4 form carefully. If you have questions about your filing status, exemptions or any other tax questions, you should consult with a tax accountant, attorney or financial planner for professional advice.
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3
Use the "Personal Allowances Worksheet" on the W-4 form to calculate the number of exemptions you are entitled to claim. Total your exemptions and enter them on line 5 of the W-4 form.
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4
Enter your full name, Social Security number, address and marital status on the form. Double-check your information to be sure it is complete and accurate. You may enter an additional amount to be withheld from your paycheck on line 6, if you wish. This will ensure that you do not underpay your taxes during the year and incur a penalty when you file your tax return.
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5
Read the instructions on line 7 of the W-4 form. If you paid no federal tax at all on your tax return, you had no tax liability last year and you expect the same to be true for the current year, you can exempt yourself from having taxes withheld from your paycheck for the current calendar year. Write "Exempt" in Box 7 if you meet both of these tests and do not want your employer to withhold payroll taxes from your paycheck.
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6
Sign and date the W-4 form and return it to your employer.
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Resources
- Photo Credit tax defined image by Christopher Walker from Fotolia.com
