To claim exempt, write EXEMPT under line 4c. 1. Gather documentation (pay stubs, previous tax return, invoices, etc.) 2.Follow the prompts to fill out the withholding calculator. If you are eligible to claim an exemption from withholding, you can use the W-4 form. Complete Form W-4 and show the additional amount you want withheld from each paycheck on the appropriate line of Form W-4. If you are exempt from withholding, write "exempt" in the space below step 4(c). You still need to complete steps 1 and 5. Certificate (Form ST4), and Exempt Organization Certificate (Form ST5). Employers withhold federal income tax from their workers' pay based on current tax rates and Form W-4, Employee Withholding Certificates.