Question

John qualified for an exemption from withholding in 2019. He also qualifies for an exemption from withholding for 2020. How does he inform his employer?

A) He will complete Step 1 only of Form W-4.

B) He can inform his employer by letter of his exemption.

C) Since he already qualified in 2019, no further action is required on his part.

D) He will submit Form W-4 and write "Exempt" on the form in the space below line 4 (c) and complete Steps 1(a), 1(b), and Step 5.

Answer 1

Option D is correct- He has to submit Form W-4 and write Exempt on the form in the space below line 4 (c) and complete Steps 1(a), 1(b), and Step 5.

explantion

For claiming the exemption from withholding John has to submit Form W-4 and he has to write Exempt below line 4(c) and he needs to complete steps 1 a and b and step 5 each time. This is applicable for each year , hence he needs to fill the form each year to claim the exemption from withholding.

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