Federal W4

[Tax_question10]

Hi I am filling the federal W4 for my new job what I need to write for step 4, please. 

What I need to select for "If Exempt from federal taxes, please select here "

[JohnW152]

You can claim exemption from withholding for 2021 only if you meet both of these conditions:

• You had no federal income tax liability in 2020, and
• You expect to have no federal income tax liability in 2021.

If both of those statements aren't true, you shouldn't claim exempt, and just leave the dropdown as -- Make a Selection --.

Please see Exemption from withholding in the instructions for Form W-4.

[Tax_question10]

@JohnW152 

 My spouse income was approx. $25,000 and I earned $3000 last year. 

and My spouse is expected to make the same amount this year as well. 

Thanks

[WendyN2]

Given the information, with no other deductions/etc. listed, I would have to assume just the SD for you both which, if $28k is what you again believe will be your combined income, then your "taxable income" ($28k - SD MFJ $24.8k = ) will be $3,200.

For MFJ, with NO other information made available to me, you'd only be liable for SS and Medicare taxes, which will total approximately $765. Filling out "Exempt" on your W4 would not take out for this, and then you would owe. An option for you, that I HIGHLY suggest, is to fill out "exempt', then in the additional withholding amount line item at the near bottom right, ask for $35 per pay check to be withheld from ONLY ONE W4 (not both of you) then at the end of the year you will be covered for your FICA (SS & Medi) tax liability. 

Your Income Taxes Breakdown

Tax Type        Marginal Tax Rate        Effective Tax Rate        2020 Taxes*

Federal                  0.00%                          0.00%                        $ -0-

FICA                      7.65%                          7.65%                        $765

State                      0.00%                          0.00%                        $ -0-

Local                      0.00%                          0.00%                        $ -0-

Total                      7.65%                                                             $765

Income After Taxes           $9,235

Retirement Contributions        $0