Barry is a college student who is employed as a waiter during the summer. He earns approximately $1,500 during the summer and estimates that he will not be required to file a tax return and will have no federal income tax liability. Last year, however, he made $6,000 and was required to file a return and pay $400 in taxes. Barry is unmarried and is supported by his parents. He has no dependents and does not have any other sources of income or deductions.
a. Can Barry claim exempt status on Form W-4 for withholding purposes?
b. Can Barry claim more than one exemption on Form W-4 (e.g., additional withholding allowances or the standard deduction allowance) to minimize the amount withheld? Explain.