The exempt box has been there for years - you were only supposed to check it if you owed zero taxes the previous year. It's possible the instructions or regulations around using the box changed.
I claim exemption from withholding for 2004, and I certify that I meet both of the following conditions for exemption:
â—Ź Last year I had a right to a refund of all Federal income tax withheld because I had no tax liability and
â—Ź This year I expect a refund of all Federal income tax withheld because I expect to have no tax liability.
If you meet both conditions, write “Exempt” here ...............
From Form W-4 for 2026:
Exempt from withholding
I claim exemption from withholding for 2026, and I certify that I meet both of the conditions for exemption for 2026. See Exemption from withholding on page 2. I understand I will need to submit a new Form W-4 for 2027.
(from back of form)
Exemption from withholding. You may claim exemption from
withholding for 2026 if you meet both of the following
conditions: you had no federal income tax liability in 2025 and
you expect to have no federal income tax liability in 2026. You
had no federal income tax liability in 2025 if (1) your total tax on
line 24 on your 2025 Form 1040 or 1040-SR is zero (or less than
the sum of lines 27a, 28, 29, and 30), or (2) you were not
required to file a return because your income was below the
filing threshold for your correct filing status. If you claim
exemption, you will have no income tax withheld from your
paycheck and may owe taxes and penalties when you file your
2026 tax return. To claim exemption from withholding, certify
that you meet both of the conditions by checking the box in the
Exempt from withholding section. Then, complete Steps 1(a),
1(b), and 5. Do not complete any other steps. You will need to
submit a new Form W-4 by February 16, 2027.
The exempt box has been there for years - you were only supposed to check it if you owed zero taxes the previous year. It's possible the instructions or regulations around using the box changed.
From Form W-4 for 2004:
I claim exemption from withholding for 2004, and I certify that I meet both of the following conditions for exemption: ● Last year I had a right to a refund of all Federal income tax withheld because I had no tax liability and ● This year I expect a refund of all Federal income tax withheld because I expect to have no tax liability. If you meet both conditions, write “Exempt” here ...............
From Form W-4 for 2026:
Exempt from withholding I claim exemption from withholding for 2026, and I certify that I meet both of the conditions for exemption for 2026. See Exemption from withholding on page 2. I understand I will need to submit a new Form W-4 for 2027.
(from back of form) Exemption from withholding. You may claim exemption from withholding for 2026 if you meet both of the following conditions: you had no federal income tax liability in 2025 and you expect to have no federal income tax liability in 2026. You had no federal income tax liability in 2025 if (1) your total tax on line 24 on your 2025 Form 1040 or 1040-SR is zero (or less than the sum of lines 27a, 28, 29, and 30), or (2) you were not required to file a return because your income was below the filing threshold for your correct filing status. If you claim exemption, you will have no income tax withheld from your paycheck and may owe taxes and penalties when you file your 2026 tax return. To claim exemption from withholding, certify that you meet both of the conditions by checking the box in the Exempt from withholding section. Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps. You will need to submit a new Form W-4 by February 16, 2027.
Thank you for the explanation fren.