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dianar929
New Member

I am not sure if I qualify to claim exemption from withholding for 2018 on W-4; how do I know if I can? I'm single & have 1 job, income is under $40k.

 
2 Replies
Hal_Al
Level 15

I am not sure if I qualify to claim exemption from withholding for 2018 on W-4; how do I know if I can? I'm single & have 1 job, income is under $40k.

From the instructions for form W-4:

Exemption from withholding. 

You may claim exemption from withholding for 2018 if both of the following apply.

 • For 2017 you had a right to a refund of all federal income tax withheld because you had no tax liability, and

 • For 2018 you expect a refund of all federal income tax withheld because you expect to have no tax liability

Reference: https://www.irs.gov/pub/irs-pdf/fw4.pdf

"Having a tax liability" is after all credits, including refundable credits like the Earned Income Credit and Child Tax Credit.

A single person with $40K income and no kids is extremely unlikely to be exempt.

Reference: https://blog.turbotax.intuit.com/tax-refunds/can-i-file-exempt-still-get-a-tax-refund-6695/

SweetieJean
Level 15

I am not sure if I qualify to claim exemption from withholding for 2018 on W-4; how do I know if I can? I'm single & have 1 job, income is under $40k.

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