2020 W-4: How to Claim Exempt

This sample document provides instructions on how to complete 2020 W-4 federal tax withholding certificate if an employee has evaluated their tax situation and determined that claiming exempt is appropriate for their situation.

One may claim exempt from 2020 federal tax withholding if they BOTH: had no federal income tax liability in 2019 and you expect to have no federal income tax liability in 2020. If you claim exempt, no federal income tax is withheld from your paycheck; you may owe taxes and penalties when you file your 2020 tax return. Additional information about eligibility to claim 'exempt' appears on page 2 of this W-4 form.