For employees, income tax is withheld from their pay by the employer. One exception is that the taxpayer’s income is too low and does not have to pay income tax for the year, then he can claim an exemption from withholding. The taxpayers can claim an exemption from withholding for 2019 if both of the followings are met:
For 2018, he had no tax liability and had a right to a refund of all federal income tax withheld.
For 2019, he expects no tax liability and expects a refund of all federal income tax withheld.
Taxpayers use Form W-4 to determine the amount of tax withheld from his pay. Taxpayers must specify a filing status and a number of withholding allowances on Form W-4. If the taxpayers’ marital status, dependents, adjustments, deductions, or credits are going to be changed, they may need to fill out a new Form W-4 to change their withholding. Taxpayers can submit a new Form W-4 to increase or decrease their withholding.