Choosing Exempt on a W-4

[Dnique8]

I have been on the same job for two years and always receive a tax refund. Annual salary is $20,080.  I file single and have no kids, no one else can claim me as a dependent. I wanted to change my W-4 from now until December. What would happen as far as filing my taxes next year? Also will the amount owed be taken from the refund or will I have to pay it back, receive no refund, and pay a penalty?

Thank You

[Critter]

NEVER claim exempt ... instead simply increase the number of allowances on line 5.   

The IRS has two qualifications for claiming "exempt" on your W-4, and you must meet both. You must have had a right to a refund of all federal income tax withheld during the previous year because you did not have any tax liability, and you must expect a refund of all federal income tax withheld this year because you don't expect to have any tax liability.