Tax Trails - Can You Claim Exemption from Withholding on Form W-4?
Note: Do not use this tax trail if you are 65 or older or blind, if another person can claim you as a dependent on his or her tax return, or if you will itemize your deductions, claim dependents or tax credits. Instead, see the discussion under Exemption from Withholding in Chapter 1 of Publication 505, Tax Withholding and Estimated Tax.
You can claim exemption from withholding for the current year only if both the following situations apply:
- For the prior year, you had a right to a refund of all federal income tax withheld because you had no tax liability, and
- For the current year, you expect a refund of all federal income tax withheld because you expect to have no tax liability.
Do you expect both of the above conditions to apply for 2015?