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 exemption from Federal income withholding tax for 2021 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 2021 W-4 form in the space below Step 4(c) and write "For 2022" at the top of the form. This is only acceptable until the 2022 W-4 form is available. It will not be accepted if "For 2022" is not indicated at the top of the form.
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. Click on the KU Payroll Dashboard button.
3. Click on the W4 Tax Withholding button.
4. Under Claim Exemption from Withholding change the year to 2022 and check the box confirming you meet the conditions to claim exempt status. It must have the year 2022 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. Fill out the W-4 boxes
4. Under Claim Exemption from Withholding, uncheck the box that indicates you meet the exemption requirements (see above picture).
5. Click submit.
Please contact the Payroll Office if you have any questions or need assistance.