Which of the following is NOT a reason to claim exemption from withholding?

Claiming exemption from withholding is typically based on the expectation of future tax liability. If an individual expects no tax liability for the current year, they might choose to claim exemption from withholding. Additionally, individuals may claim exemption if they had a refund in the previous year, indicating that they paid more in taxes than they owed.

The concept of having a federal income tax liability in the previous year does not justify claiming an exemption from withholding. In fact, having a tax liability suggests that the individual does have tax obligations, which contradicts the conditions necessary to claim such an exemption. Generally, claiming the same exemption as the previous year could also be justified if the circumstances regarding income and tax status have not changed.

Thus, the presence of federal income tax liability in the previous year points toward the expectation of needing to pay taxes in the current year, rather than an exemption from withholding.