Federal Income Tax Exemption
Federal Income Tax Exemption status expires at the end of each calendar year, per IRS regulations. You must update your W-4 status to continue claiming exemption for the new calendar year.
You may claim exempt from Federal income withholding tax for 2020 if you meet both of the following conditions:
- Last year I had no tax liability, and
- This year I expect to have no tax liability.
To claim exemption from withholding, certify that you meet both of the conditions above by writing "Exempt" on the 2020 W-4 form in the space below Step 4(c).
If you claim exemption, you will have no Federal income tax withheld from your paycheck. This could affect your tax return filed at the end of the year. Refer to the W-4 instructions or consult a tax expert if you are unsure if you should claim exemption.
IRS Publication 505 provides further information.
Instructions to update your W-4 online to continue claiming exemption:
1. Log into your HR Pay Employee Self-Service
2. Follow the path to W-4 Tax Information:
3. Under Claim Exemption change the year to 2020 and check the box confirming you meet the conditions to claim exempt status. It must have the year 2020 entered to be valid. Please see the highlighted boxes.
4. Click Submit
Instructions to remove your exemption status online:
Follow steps 1 and 2 above to find your W-4 page in HR Pay.
3. Enter the allowances you want to claim.
4. Indicate your marital status.
5. Uncheck the box that indicates you meet the exemption requirements.
6. Click submit.
Please contact the Payroll Office if you have any questions or need assistance.