Figure 1-B. 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 2005, did you have a right to a refund of ALL federal income tax withheld because you had NO tax liability?
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IF Yes Continue To Decision (2)
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IF No Continue To Process (a)
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Process (a). You CANNOT claim exemption from withholding.
Decision (2). For 2006, will someone (such as your parent) be able to claim you as a dependent?
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IF Yes Continue To Decision (4)
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IF No Continue To Decision (3)
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Decision (3). Will your 2006 total income be more than the amount shown below for your filing status?
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Single: $8,450
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Head of household: 10,850
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Married filing separately for BOTH 2005 and 2006: 8,450
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Other married status (include BOTH spouses' income whether filing separately or jointly): 16,900
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Qualifying widow(er): 13,600
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IF Yes Continue To Process (a)
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IF No Continue To Process (b)
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Process (b). You CAN claim exemption from withholding.
Decision (4). Will your 2006 income be more than $850?
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IF Yes Continue To Decision (5)
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IF No Continue To Process (b)
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Decision (5). Will your 2006 income include more than $300 of unearned income (interest, dividends, etcetera)?
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IF Yes Continue To Process (a)
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IF No Continue To Decision (6)
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Decision (6). Will your 2006 total income be $5,150 or less?
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IF Yes Continue To Process (b)
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IF No Continue To Process (a)
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End. This is the end of the flowchart.
