You can claim “exempt” on Form W-4 only if you had no federal income tax liability in the prior year and expect none in the current year
Review your prior year federal tax return to confirm you had no tax liability
Estimate your current year income and withholding to confirm you expect no federal income tax liability
On the current Form W-4, write “Exempt” in the space below Step 4(c)
Complete your name, address, Social Security number, and signature on the W-4
Give the completed W-4 to your employer’s payroll department
Recheck your status before each new tax year
Do not claim exempt if you expect to owe federal income tax
If your situation changes, submit a new W-4 with updated withholding choices