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foreign [Music] were here today to talk about a very important topic understanding what tax exempt means and how to claim exemption from withholding on your irsw4 form taxes can seem complex but they dont have to be were here to break it all down so lets start by defining tax exempt the term tax exempt refers to income or transactions that are free from taxes this could apply to certain types of income organizations or even people under specific circumstances for individuals tax-exempt status often refers to the ability to exclude all or some of your income from taxation meaning you would owe no taxes on that income now that sounds great but before you get too excited its important to understand that this status is not Universal it depends heavily on specific circumstances and requirements in terms of withholding in general a tax-exempt status can be claimed on your W-4 form if you had no tax liability last year and expect to have none this year this usually applies to certain low
