Under what circumstance does someone need to provide a new Form W-4 each year?

Form W-4 is essential for employees to indicate their tax withholding preferences to their employer. When someone claims an exemption from federal income tax, they must provide a new Form W-4 each year to confirm and certify their exemption status. This requirement ensures that employers have the most current and accurate information regarding an employee's tax withholding.

Claiming an exemption indicates that the individual expects to owe no federal income tax for the current year and had no tax liability in the previous year. The IRS requires employees to re-confirm this status annually to avoid incorrect withholding, which could lead to a tax liability.

The other options, such as extra withholding, deductions, and dependents, typically do not necessitate the submission of a new form each year unless there are changes in the individual's financial situation or tax status. In contrast, the exemption status requires yearly confirmation to maintain compliance with tax regulations.