Can I still claim exempt?

[leones50]

I've claimed exempt all year under the assumption that it was okay since I didn't anticipate any tax liability. That being said, I have three dependents to claim and only just recently READ that you aren't supposed to file exempt if you plan to claim dependents. What can I expect?

[Critter · Accepted solution]

One has nothing to do with the other ... however, on the W-4 it is unwise to ever claim exempt since there are serious fines involved if you do wind up having any tax liability ... the better choice is to increase the allowances on line 5 until you have no federal withholdings .. this will give you the same effect without any of the risks.