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

[hellogoode]

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]

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.

[hellogoode]

Thank you! That was very helpful! Does this still apply if I start work on December 1, 2015 and will be making about $5,000 for 2015?

[Critter1]

Don't mark exempt ever on a W-4....... even if you qualify this year you will forget to change it next year and you can get in extreme trouble in the future. If you file Single with one allowance this year,  at your income level,  little or no withholding will be taken and if it is then you can file a return to get it back.

[Carl]

It doesn't negate the requirement to file a tax return, if that's what you're asking. I'm sure there's no way you survived the previous 11 months with zero income. You had to have had something.

[hellogoode]

I was living with my parents, I just graduated college in May!

[Critter1]

Then your parents will probably claim you one more time so discuss this with them.

[Carl]

If you were living with your parents on or after May1st, then you meet the 5-month "living with my parents" requirement as a student, and they qualify to claim you. Keep in mind that the IRS does not give the student any choices here. If your parents *qualify* to claim you, then it does not matter if they claim you or not. You do not qualify to take the self-exemption status. Yes, your parents have the choice to claim you or not. But you the student do not have a choice.

[Critter1]

And if you make less than $6200 in 2015 then your parents claiming you will make no difference on your return, so have a talk with them before you file and mess things up for both of you.

[SweetieJean]

Try this Federal tool, and keep your state taxes in mind:
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/">https://turbotax.intuit.com/tax-tools/...>