Based on a number of allowances and exemptions you claim, your employer will withhold a certain amount of your income from each paycheck to cover taxes owed to the IRS. The fourth section is where things can easily get tricky for a full-time student. A new W-4 form is now in effect, starting January 1, 2020, for all new hires and employees who want to change their W-4 forms. It is common for students to claim “exempt” on Form W-4 (PDF), Employee’s Withholding Allowance Certificate. It is located on page three of the 2018 W-4 form pack. As long as she only earns $6150 or less during the year (from that job and all other income she might have for the year), you should be OK. If your parents do not claim you and you do not have any dependents, you should put "1" as the number of exemptions. To claim exemption from withholding, certify that you meet both of the conditions above by writing “Exempt” on Form W-4 in the space below Step 4(c) and complete Steps 1 and 5. The main difference between this new version and previous versions is the elimination of withholding allowances. Withholding your taxes by filling out a W-4 form with the correct amount of allowances is the easiest way to avoid underpaying. You may also use the IRS withholding calculator. If an employee wants to claim exemption, they must write "Exempt" on Form W-4 in the space below Step 4(c) and complete Steps 1 and 5. 2020 W-4 Sample - Claiming Exempt.pdf 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. So should I claim 0 or 1 allowance? Before you try to fill out this form, complete the Personal Allowances worksheet that should be attached to the W-4 paperwork your employer gave you. For this to be acceptable, you normally would have to have had no tax liability in the prior year and expect no withholding for the current year (see above). Your parents can still claim you until you are 24 years old. Another person is claiming you as a dependent. With all the activity on this one blog post, it seems this is a topic that many parents and children find relevant. Like any taxpayer, college students should be on the lookout for essential tax forms and documents. If they worked a traditional part-time job, they'll receive a … Tread carefully before claiming exempt on your W-4 form. Please check out and then share this 5-minute recorded presentation I put together on how a child or student who earns less than $6,300 in wages during the year should correctly complete the W-4 form by claiming Exempt. As I mentioned earlier in this article, depending on your specific situation, it may be beneficial to claim … Hi. Do not complete any other steps on Form W-4. If this is the case for you, you should put zero exemptions on your W4. Claiming "Exempt" on the W-4, usually means that the employer will withhold no Income taxes (though if the child is expected to earn a lot..that "exempt" claim might not be allowed). If you claim an exemption from withholding, you will need to submit a new Form W-4 by February 16, 2021. Your W-4 is filed with your employer. The 2020 W-4 form has arrived. Claiming Exemption from Withholding Starting January 1, 2020 . Many college students are still claimed by their parents.