What does EXEMPT on the W-4 Form mean?
Claiming exempt from withholding means that you expect to have no tax liability on your personal tax return at the end of the year. To claim exempt from federal withholding, you need to fill out a W-4 Form and write the word Exempt on line 7. Wee Form W-4 for more details, and to determine if you qualify to claim exempt . You must renew your exemption status every calendar year by February 15; otherwise taxes will be held. It is your responsibility to re-file as necessary.