The last thing you want to do is frantically run up to your boss asking “How many allowances do I claim on my W-4?”.
Being aware of the number of allowances you are claiming on a Form W-4 [Employee’s Withholding Allowance Certificate] is important for a variety of reasons. Most importantly, the number of allowances you claim on a W-4 determines the following;
- how much tax will be taken from your income (aka the withholding amount)
- the size of your tax refund
Steps to filling out a W-4
You’ll need to follow four simple steps when filling out your W-4 Form:
- Fill out your personal information (Name, Date of Birth, Address, Marital Status)
- Know the number of personal and dependency exemptions you are claiming on your tax return.
- Based on the number from step 2, use that number to help determine your number of allowances.
- Don’t forget to sign the W-4 and turn it into your employer!
The allowances you claim while filling out a W-4 if you are single will differ from the allowances you claim if you are married or have kids.
Claiming zero allowances
- The maximum amount of tax is withheld. Meaning, when it comes time to file your tax return you will most likely receive a refund.
- You’re being claimed as a dependent on someone else’s tax return.
Claiming one allowance (ideal if you are single with one job)
- You’re single and have one job. Claiming one allowance will most likely result in a refund when you file your taxes.
Claiming two allowances
- You are single. Claiming two allowances will get you close to your tax liability but may result in tax due when filing your taxes.
- You’re single and work more than one job. Claim one allowance at each job or two allowances at one job and zero at the other.
- You’re married.
Claiming three allowances
- You are married with one child.
Claiming additional allowances
- File as head of household if you are eligible. You are able to claim additional allowances.
- You had at least $2,000 of child or dependent care expenses that you plan on claiming credit
- You’re eligible to claim the Child Tax Credit
Can I fill out a new W-4 form?
Yes, employees can submit a new W-4 form to their employee at any time during their employment. Have you recently started a second job, had a baby, or tied the knot? Life changes such as these should encourage you to update your W-4 withholding.
A great tool to help you while filling out a W-4 is the IRS Withholding Calculator, located on the IRS website.
Claiming zero allowances means less take home pay, but a bigger tax refund during tax season.
The number you report on a W-4 will ultimately determine your take home pay and your tax refund. Don’t write down any number. Take the few extra minutes to really assess your situation and fill in the W-4 accordingly. By doing so you’re less likely find yourself in a difficult financial situation.
Then, when you’re ready to file your taxes, you’ll have a heads up on whether or not you’ll be receiving a tax refund!
Hi, I am 22, my mother still claims me as a dependent. i am a part time collage student and just switched from working part time waitress jobs to having a full time position as a billing clerk at the beginning of the year. I will be averaging 21,000 in gross wages this year. should my mother continue to claim me? if she does how would this affect both her tax refund as well as my own? also should i continue to claim 0 on my w-4 form?
Also I am self employed through Mary Kay as and independent beauty consultant. how will this affect my taxes throughout the year and my end of year tax return?
Hi Bre,
Being that you are self-employed, you will receive a Form 1099 as opposed to a Form W-2 from your employer. This income will be reported on a Schedule C tax form.
Hi Bre,
As long as your mother meets the IRS requirements to claim you as a dependent child, she can still do so on her tax return. Based on the information you’ve provided above, your mother does not qualify to claim you based on your age. Although you are a student under age 24, you are only part-time. In order for your mother to claim you over the age of 19, you must be a full-time student. The guidelines are as follows:
1. The child must be related to you as your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
2. The child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
3. The child must live with you for more than half the year.
4. The child may have a job, but that job cannot provide more than half of his/her support.
5. The child must only be claimed by one person.
When it comes to how many allowances you choose to claim on your W-4, it is important to know that the less you claim, the more is withheld from your paychecks to cover taxes owed to the IRS. Since you are currently claiming zero allowances, you may notice that a good amount is being withheld. This is because claiming zero allowances allows your employer to withhold the maximum amount from your income per pay period. This will typically result in being issued a refund from the IRS. If you would prefer more take home pay and less of a refund, I suggest claiming one allowance instead.
Im married and we live together and have one child. Wife does not work and my income is the only one coming in. How would i file to get the most out of my paychecks. Im fine with a small refund as long as i dont owe money.
Hi Kyle,
In order to have the least amount of tax withheld from your paychecks, I suggest using the Personal Allowance Worksheet on the W-4 form. After completing this, keep in mind that the more allowances you claim, the less is going to be withheld from your paychecks. This could result in owing the IRS if you are not careful. There is no magic amount of allowances to claim as it provides you with more of an estimate.
I am single with no dependents. I work 2 jobs. 1 full time and 1 part time. Should I claim 0 allowances for both jobs or 1?
Hi Kiara,
My advice would be to claim zero allowances at your part-time job and one allowance at your full-time job; assuming your full-time job earns you a higher income. This is the approach to take if you prefer more withheld throughout the year so that you do not owe come tax time.
I am pregnant single mother I am due in Oct. should I wait to claim and how much should I claim without having to pay back taxes. i work with derict care and I only get paid 10.35 and work 40 hours a week..not a big pay check as of right now I claim 0 and they take a decent amount of taxes what should I do.?
Hi Elisa,
Typically, the goal is to have your W-4 form reflect how you will complete your actual tax return come time to file. Since your baby is due in October, you can claim an additional allowance now if you plan to claim the child as a dependent for the tax year. You mentioned that a large amount is withheld from your paychecks. This is because you are claiming zero allowances. Claiming zero on your W-4 lets your employer withhold the maximum amount allowable for taxes. The more allowances you claim, the less will be withheld (and the more you will see in each paycheck).
Hi, I currently make around 44,000 a year and have been filing a 2 on my taxes. I have no home no children no loans etc pretty much a 0 on my books. This is my first full time job out of college. I was wondering if I will have to pay in if I keep going at a rate of 2 withholding or if I should switch it to a 1. My financial person said I may end up paying 500 dollars. I am also currently 24 and single.
I am trying to get around to pay very minimal like 200 dollars or make 200. I was wondering since I am over withholding am I on a bad track to owing a ton of money when taxes are due next year.
Hi Again Ben O,
In regards to this comment based on your last one, I would suggest updating your W-4 for the next pay period to claim one allowance. Check out your pay statement and take a look at the difference in federal withholding.
Hi Ben O,
Unfortunately, there is no “right” answer. When it comes to your W-4, the ball is pretty much in your court. The amount of tax you owe for the year doesn’t alter based on the amount of allowances you report. Your W-4 only controls when and how you pay the total. The more allowances you report, the less is withheld from your paychecks throughout the year. The less allowances you report, the more is withheld throughout the year. If you overpay over the year, then you will be issued a tax refund. On the other hand, if you underpay, then expect a tax bill. Claiming two allowances definitely gives you more take-home pay whereas claiming one would give you less take-home pay but also mean you’d be issued a refund come tax time. It’s more about preference in this particular case.