Figure 1-B. 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 2009, did you have a right to a refund of ALL federal income tax withheld because you had NO tax liability?

Process (a)

You CANNOT claim exemption from withholding.

Decision (2)

For 2010, will someone (such as your parent) be able to claim you as a dependent?

Decision (3)

Will your 2010 total income be more than the amount shown below for your filing status?

Process (b)

You CAN claim exemption from withholding.

Decision (4)

Will your 2010 income be more than $950?

Decision (5)

Will your 2010 income include more than $300 of unearned income (interest, dividends, etcetera)?

Decision (6)

Will your 2010 total income be $5,700 or less?

End

This is the end of the flowchart.

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