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 2019, 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 2020, 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 2020 total income be more than the amount shown below for your filing status?

Single: $12,400
Head of household: 18,650
Married filing separately for BOTH 2019 and 2020: 12,400
Other married status (include BOTH spouses' income whether filing separately or jointly): 24,800
Qualifying widow(er): 24,800
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 2020 income be more than $1,100?

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

Decision (5)

Will your 2020 income include more than $350 of unearned income (interest, dividends, etcetera)?

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

Decision (6)

Will your 2020 total income be $12,400 or less?

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

End

This is the end of the flowchart.