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2. Determining When to Claim Exempt Status

If you intend to file exempt from tax withholdings, you first must make sure you are qualified to do so, and these qualifications change quite frequently. According to the IRS, you can claim an exempt status if you had a right to a full refund of all federal income tax that was withheld during the year of 2017 because you had no tax liability. Additionally, you will be expecting a refund of all federal income tax that is withheld for the 2018 tax year because you do not expect to have a tax liability. If you meet both of these conditions, you can write exempt in box seven on the W4 Form.

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