Donald Trump’s new security directive labels anti-capitalist beliefs as a predictor of political violence. The irony: left-wing structural analysis actually pushes people away from lone-wolf attacks and toward mass organizing for change.
Tell me: What is the correct withholding for an individual who claims dependent credits (line 3) and/or deductions (line 4(b)) equal or greater than they expect in total income?
The math says that number is zero. Any number other than “zero” is not the correct withholding. There is no legal or mathematical justification for any other number: The correct withholding is “zero”.
In this hypothetical, I’m not claiming exempt status. I don’t qualify to claim it, because I had a tax liability last year. That does not mean that some entirely arbitrary amount of money must be withheld for taxes I don’t actually owe. It means that I must actually disclose that I intend to claim credits and deductions exceeding my total income.
Why do you think I need “exempt status” to achieve zero withholding in a particular year?
Because the IRS says so? Did you not read the quoted passage?
Tell me: What is the correct withholding for an individual who claims dependent credits (line 3) and/or deductions (line 4(b)) equal or greater than they expect in total income?
The math says that number is zero. Any number other than “zero” is not the correct withholding. There is no legal or mathematical justification for any other number: The correct withholding is “zero”.
The confusion arises from what “exempt status” actually means. If you read the instructions on the W4, you’ll find that what it actually means is that you are not disclosing your dependent credits and deductions via W4. You complete only steps 1(a) (your Name); 1(b) (your social security number) and 5 (signature and date). You write “exempt” under line 4© and provide no further information. You are not informing your employer or the IRS why there should be zero withholding; you are only informing them that you are exempt from withholding.
In this hypothetical, I’m not claiming exempt status. I don’t qualify to claim it, because I had a tax liability last year. That does not mean that some entirely arbitrary amount of money must be withheld for taxes I don’t actually owe. It means that I must actually disclose that I intend to claim credits and deductions exceeding my total income.
From the W4 instructions: