Figure 1-A. Exemption From Withholding on Form W-4

Figure 1-A. Exemption From Withholding on Form W-4

Summary: This is a flowchart used to determine if the taxpayer is allowed to claim exemption from withholding on his Form W-4.

Start

This is the start of the flowchart.

Decision (1)

For 2022, did you have a right to a refund of ALL federal income tax withheld because you had NO tax liability?

IF Yes Continue To Decision (2)
IF No Continue To Process (a)

Process (a)

You CAN’T claim exemption from withholding.

Continue To End

Decision (2)

For 2023, will someone (such as your parent) be able to claim you as a dependent?

IF Yes Continue To Decision (4)
IF No Continue To Decision (3)

Decision (3)

Will your 2023 total income be more than the amount shown below for your filing status?

Single: $13,850
Head of household: 20,800
Married filing separately for BOTH 2022 and 2023: 13,850
Other married status (include BOTH spouses' income whether filing separately or jointly): 27,700
Qualifying surviving spouse: 27,700
IF Yes Continue To Process (a)
IF No Continue To Process (b)

Process (b)

You CAN claim exemption from withholding.

Continue To End

Decision (4)

Will your 2023 income be more than $1,250?

IF Yes Continue To Decision (5)
IF No Continue To Process (b)

Decision (5)

Will your 2023 income include more than $400 of unearned income (interest, dividends, etcetera)?

IF Yes Continue To Process (a)
IF No Continue To Decision (6)

Decision (6)

Will your 2023 total income be $13,850 or less?

IF Yes Continue To Process (b)
IF No Continue To Process (a)

End

This is the end of the flowchart.