Deductions & credits


@AmeliesUncle wrote:

@Opus 17 wrote:

He should NOT claim exempt on his W-4, that is only for legal exemptions like employees of the United Nations who pay tax to their home country instead of the US.  


 

???  I'm not sure where you are getting that, but that is not true.  A person can enter "exempt" on a W-4 if they did not have any tax the previous year and expect there will be no tax in the current year.  See the W-4 instructions.  It is very common (and correct) for most dependents to put "exempt" on their W-4.  


Nevertheless, because the system is self-adjusting, it is unwise to claim exempt, especially if someone's income is variable.  Let the system work as it is designed.