Frequently Asked Questions

Who is eligible for filing exempt during the tax season and under what circumstances?

Eligibility for filing exempt during the tax season is limited to certain circumstances. If you owed no taxes in the previous tax year and received a refund for federal income tax that was withheld, you may be eligible for an exemption. Another instance where you can claim exemption is if you have no tax liability for the current year. Students, particularly those working part-time or seasonally, may also be eligible to file as exempt. If a student's parents can claim them as a dependent, the student may be able to indicate zero allowances on their tax forms. However, if the student is not a dependent but is working, they can claim two allowances as a single taxpayer would. It's important to note that claiming exempt means you are stating that you expect to have no tax liability for the current year. This can be a risky move if your circumstances change, as you could end up owing taxes. Therefore, it's always wise to consult with a tax professional or accountant to understand your specific situation and make the best decision for your financial health.