Federal Tax (W-4)
Theoption allows users to view their current Federal tax data, establish a new Federal income tax withholding, make changes to their existing Federal income tax withholding data, or claim total exemption from Federal tax withholding.
The following changes can be made to existing Federal income tax withholding data:
- Change the number of exemptions
- Change the filing status
- Establish, increase, or decrease the amount of additional deduction withholding
- File exemption from paying Federal tax
If there was no Federal tax owed in the previous tax year and it is expected that no Federal tax will be owed for the current year, total exemption from Federal tax may be claimed. However, a total exemption from Federal tax must be filed after February 15 of each year.
If the duty station is located in the Republic of Panama, Virgin Islands, Guam, and the northern Mariana Islands, then exemption from Federal income tax may apply. For more information, the user should contact their servicing personnel or payroll office.
If 11 or more exemptions are claimed, the Internal Revenue Service (IRS) will be notified and the user will be placed under IRScontrol. Once under IRS control,ESS cannot be utilized to increase the number of exemptions. To increase the number of exemptions, the Employee's Withholding Allowance Certificate (W-4) must be submitted to NFC . Users can also use this option to decrease the number of exemptions. Users should contact their servicing personnel or payroll office for additional information.
If wages exceed $200 per week and total exemption from Federal tax withholding is claimed, the IRSis notified.
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