What does non-exempt, expempt mean on W2 form?

Answer 1

Do you mean on a W-4 form? You are only allowed to file "exempt" if you expect to have no tax liability this year, and didn't have any last year. They won't withhold anything from your pay for federal income tax.

If you are a dependent and expect your total income to be under $5350 for the year, or single, not a dependent, and expect total income of under $8750, and you didn't pay any tax last year, you can file as "exempt".

Answer 2

exempt means you do not pay taxes, but just remember that you will probably have to pay in come tax time.