Figure A. Exemption From Withholding on Form W-4. Summary: This is a flowchart used to determine if the taxpayer is allowed to claim exemption from withholding on his Form
W-4.Start. This is the start of the flowchart.Decision (1). For 2003, did you have a right to a refund of ALL federal income tax withheld because you had NO tax liability?
| IF Yes Continue To Decision (2)
|
| IF No Continue To Process (a)
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Process (a). You CANNOT claim exemption from withholding.
Decision (2). For 2004, will someone (such as your parent) be able to claim you as a dependent?
| IF Yes Continue To Decision (4)
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| IF No Continue To Decision (3)
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Decision (3). Will your 2004 total income be more than the amount shown below for your filing status?
| Single: $7,950
|
| Head of household: 10,250
|
| Married filing separately for BOTH 2003 and 2004: 7,950
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| Other married status (include BOTH spouses' income whether filing separately or jointly): 15,900
|
| Qualifying widow(er): 12,800
|
| IF Yes Continue To Process (a)
|
| IF No Continue To Process (b)
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Process (b). You CAN claim exemption from withholding.
Decision (4). Will your 2004 income be more than $800?
| IF Yes Continue To Decision (5)
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| IF No Continue To Process (b)
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Decision (5). Will your 2004 income include more than $250 of unearned income (interest, dividends, etcetera)?
| IF Yes Continue To Process (a)
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| IF No Continue To Decision (6)
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Decision (6). Will your 2004 total income be $4,850 or less?
| IF Yes Continue To Process (b)
|
| IF No Continue To Process (a)
|
End. This is the end of the flowchart.
