Which IRS form do employees use to claim exemption from tax withholding?

Employees use Form W-4 to claim exemption from federal income tax withholding. This form allows employees to inform their employer of their tax situation, including their eligibility for exemption from withholding. If an employee meets certain criteria, such as having no tax liability in the previous year and expecting none in the current year, they can indicate this on the W-4 form, which must then be used by the employer to determine the appropriate amount of federal income tax to withhold from their paychecks.

While other forms like W-2, 1099-MISC, and 1040 are important in the payroll and tax process, they serve different purposes. Form W-2 is used by employers to report annual wages and taxes withheld for employees, Form 1099-MISC is typically used for independent contractors and certain types of income, and Form 1040 is the individual income tax return form used to report annual income and calculate tax liabilities. None of these forms are used by employees to claim exemption from tax withholding, making Form W-4 the appropriate choice.