Problem with my W-4 help!?

Okay here's the situation, last year i made only 9,000 dollars and i didn't have to pay back, i got a refund of 800 bucks back on my income tax. This year i've been only working for 4 months, i put "EXEMPT" on my Federal and "EXEMPT" on my Minnesota State W-4 sheet, is that illegal? I heard you can only put "exempt" on your Federal W-4 only and not your State W-4 sheet. is that true?

Public Comments

1. if you're 100% sure you won't owe any federal tax, you can claim exempt - unless the state had deductions that will reduce your taxable income to zero - you shouldn't claim exempt there - I'm not familiar with Minnesota state income tax
2. Since you had tax liability last year, you aren't allowed legally to claim "exempt" this year for federal. But if you make under $8750 for the year ($5350 if you are a dependent) then it isn't going to hurt you, you won't owe anything. I can't help re MN - I don't know the rules there.