what does exempt mean on a w4
You can also use the W-4 to declare yourself exempt from withholding, meaning your employer will not reduce your salary for any federal income tax. You can claim an exemption from withholding only if you had no income tax liability in the prior year and you donât expect to owe any tax in the current year.ou can also use the W-4 to declare yourself exempt from withholding, meaning your employer will not reduce your salary for any federal income tax. You can claim an exemption from withholding only if you had no income tax liability in the prior year and you donât expect to owe any tax in the current year.