The great majority of employees of the City of New York are required to have taxes withheld; however, certain situations exist that entitle an employee to be fully tax exempt.
No employees, including students, are automatically exempt from tax liability. To claim exempt status, you must meet certain conditions and submit a new certificate and signed Withholding Certificate Affirmation each year. You cannot claim exemption from federal withholding taxes for 2017:
If you are exempt from federal withholding taxes, you must certify on the W-4 form that you meet both of the following conditions:
To claim exemption from New York State and City withholding taxes in 2017, you must be able to certify the following conditions in writing:
Generally, as a resident, you are required to file a New York State income tax return if you are required to file a federal income tax return, or if your federal adjusted gross income plus your New York additions is more than $4,000, regardless of your filing status. However, if you are single and can be claimed as a dependent on
another person’s federal return, you must file a New York State return if your federal adjusted gross income plus your New York additions is more than $3,100.
If you meet the criteria for state exemption, file an IT-2104-E Certificate of Exemption from Withholding instead of the IT-2104 form.
Forms claiming full exemption from withholding expire each year. If your exempt status continues, you need to submit new forms annually. You must file a new W-4 form by February 16 to continue to claim full exemption from federal taxes and/or a new IT-2104-E form by April 30 to continue to claim full exemption from state and city taxes. You must submit the Withholding Certificate Affirmation with your withholding certificate each year.
If you do not submit new forms to your agency to continue to claim full exemption, taxes will be withheld as if you were single with zero allowances until new acceptable forms are submitted.