Can I claim an exemption from withholding? It's my first time filing taxes ever.

Forum|Forum|7 years ago
June 7, 2019
1 reply
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Hello! I just got my first job after graduating college and my employer is having me fill out my W-4 form. I was wondering if I could claim an exemption from withholding for 2015. The two conditions on the Employee's Withholding Allowance Certificate form that I have to meet to claim the exemption are:

1) Last year I had a right to a refund of all federal income tax withheld because I had no tax liability, and

2) This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.

If I meet both conditions, I can write "Exempt" in box #7. Can I do this? Because I've never filed taxes before, I technically had no tax liability last year. Thank you for your time!"

Carl

Level 11

Just because you had no tax liability last year, is absolutely no guarantee whatsoever that you won't have a tax liability this year. If your taxable income will be more than $6200 for 2015, you will most likely have a tax liability and if not, will have to file a tax return to prove that you don't if you have more than $6200 of taxable income.

Understand that claiming exempt on the W-4 does not in any way preclude your legal requirement to file a tax return. If you end up owing tax and none has been withheld, the fines and penalties can financially devastate you.