Exemption From Federal and State Withholding
Federal
Any employee who qualifies and wishes to take advantage of exempt status from federal withholding must complete a new Form W-4 (Employee’s Withholding Allowance Certificate) before February 15 of that year.
To qualify for exemption from federal withholding, an employee must meet all the following criteria:
- Must have had no Federal income tax liability last year, AND
- Must expect to have no Federal income tax liability this year.
State of Michigan
You may claim exemption from Michigan income tax withholding if all the following conditions are met:
- Your employment is intermittent, temporary, or less than full time.
- Your personal and dependency exemptions exceed your annual taxable compensation.
- You claimed exemption from federal withholding; AND
- You did not incur a Michigan income tax liability for the previous year.
Federal W-4 and State W-4 forms and W-4 instructions are available:
IRS Website: https://www.irs.gov/pub/irs-pdf/fw4.pdf
State of Michigan website: https://www.michigan.gov/media/Project/Websites/taxes/Forms/MIW4
Questions should be addressed to the Payroll Office at 355-5010 or CTLR.payroll@ctlr.msu.edu .
