There are some things I can't figure out without seeing you tax return.
I haven't heard anything about changing the W-4, but things change quickly and with little notice.
You can claim exempt, write EXEMPT under line 4c. You may claim EXEMPT from withholding if:
- Last year you had a right to a full refund of All federal tax income and
- This year you expect a full refund of ALL federal income tax.
- NOTE: if you claim EXEMPT you must complete a new W-4 annually in February
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