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 2010, 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 2011, 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 2011 total income be more than the amount shown below for your filing status?

Single: $9,350
Head of household: 12,050
Married filing separately for BOTH 2010 and 2011: 9,350
Other married status (include BOTH spouses' income whether filing separately or jointly): 18,700
Qualifying widow(er): 15,050

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 2011 income be more than $950?

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

Decision (5)

Will your 2011 income include more than $300 of unearned income (interest, dividends, etcetera)?

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

Decision (6)

Will your 2011 total income be $5,700 or less?

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

End

This is the end of the flowchart.