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 2015, 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 CANNOT claim exemption from withholding.

Continue To End

Decision (2)

For 2016, 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 2016 total income be more than the amount shown below for your filing status?

Single: $10,350
Head of household: 13,350
Married filing separately for BOTH 2015 and 2016: 10,350
Other married status (include BOTH spouses' income whether filing separately or jointly): 20,700
Qualifying widow(er): 16,650
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 2016 income be more than $1,050?

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

Decision (5)

Will your 2016 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 2016 total income be $6,300 or less?

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

End

This is the end of the flowchart.