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  • Is it better to claim 1 or 0 allowances...

    Step-by-Step Guide to Claiming Exempt Status on Form W-4 (Including Special Cases for Students, Seasonal Workers, and More)

    Key Takeaways:

    • Claiming exemption on Form W-4 avoids federal income tax withholding.

    • You must have had no tax liability last year and expect none this year.

    • Write "Exempt" in Box 7 to claim exempt status.

    • Students and seasonal workers may qualify under specific conditions.

    • File a new W-4 annually if your exempt status changes.

    When it comes to filing your taxes, it is important to understand not only how much you owe, but also if you are eligible for claiming exempt status on Form W-4.

    Not only will this help you increase your disposable income, it will also help you get more clarity on correctly paying the right amount of taxes. Let’s find out more.

    What Does It Mean to Claim Exempt on Form W-4?

    Claiming exempt status on Form W-4 means indicating that you are not subject to federal income tax withholding because you had no tax liability in the previous year and expect none in the current year.

    When you claim exemption, your employer

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