How do I prove to a lender or employer that I’m tax exempt?

To an employer:

The simplest way is to show them your federal refund check or IRS account transcript that confirms you received a 100% refund of the federal taxes that were withheld from your paycheck. That proves you had no federal income tax liability and are legally eligible to claim exemption from withholding per IRS guidelines

Once you’ve received your refund and meet the IRS’s exemption criteria, you can update your Form W-4 and certify yourself as exempt from future withholding.

To a lender:

You generally don’t need to prove that you’re tax exempt to a lender. Lenders typically just want to verify your income using recent tax returns, which you will still have through the 12-411 process.

You’ll continue to file tax returns annually—prepared and submitted by our NoTaxPros—so you’ll have everything you need to provide documentation for loan, mortgage, or financing applications.