It depends on the context of your question. If you are referring to a W4, the IRS addresses this in this topic. If an employee qualifies, he or she can also use Form W-4 to tell you not to deduct any federal income tax from his or her wages. To qualify for this exempt status, the employee must have had no tax liability for the previous year and must expect to have no tax liability for the current year.
Allowances were used for a taxpayer to list how many dependents were in his/her household. You could list as many allowances you wished to list and the more allowances you listed, the less tax was withheld from your paycheck. At the end of the year however, you may have ended up owing taxes than receiving that nice refund that you expected. For this reason, the W4 does not address allowances any longer in its current form. It is now defunct.
If the context of your question does not involve a W4, please provide more specific details about your question.
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