Employees Exempt From Federal Income Tax Withholding

Reminder about Employees Exempt From Federal Income Tax Withholding

Pursuant to IRS Publication 15, an employee claiming exemption from federal withholding can do so only by filing Form W-4 with their employer. To continue exempt filing status, and to claim exemption from withholding write “Exempt” on Form W-4 in the space below Step 4(c). 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 17, 2026. If the employer (agency) does not receive a new W-4 by February 17, 2026 they must begin withholding based on if employee had checked the box for single or married filing separately in Step 1c and made no entries in Step 2, Step 3, or Step 4 of the 2026 W-4. If an employee provides a new Form W-4 after February 17, 2026 it will apply to future wages only. No refund of taxes previously withheld will be made.