Last year, after all was said and done I got back every nickel of fed income tax I paid in. I see nothing that would think it would be any different this year. Am I considered exempt?

I usually claim 12-13 allowances on my w-4 due to my 5 children/wife and me being the sole bread winner, but due to my house, charitable contributions, etc.etc. I guess i should claim much more, but i have heard the only way to get them to take out less for 10 or more allowances is to actually be exempt.

I recieved a bonus last year of $5k, it was taxed heavily even though i had a number of allowances on my w-4, I realize that the employer pays taxes under a flat rate system for supplemental income.

This year, i would like to realize much more of my bonus WHEN IT IS PAID TO ME, as opposed to getting a refund at the end of the year.

Since i don't see an tax liablity last year or this year, can i claim exempt on my w-4 and if i do will my bonus still be taxed as usual?

If you got ALL of your withheld income tax last year, then you ARE exempt from withholding.

However, the exempt status will probably NOT apply to the bonus. Contact your payroll department to find out for sure, but generally bonuses are subject to a flat 30% withholding.