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 from Egypt and will start a new job at Boston Children’s next July, so I think I am a non-resident alien. How many allowances should I claim?
I am married and have 3 kids, but I think this does not matter, being a non-resident alien.
Thanks in advance
Hi Ahmad,
That is correct; there are special rules that apply when completing your W-4 as a nonresident alien. As you can further review in IRS Publication 519, you are required to:
1. Enter your social security number (SSN) on line 2. Do not enter an individual taxpayer identification number (ITIN).
2. Check only “Single” marital status on line 3 (regardless of your actual marital status).
3. Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U.S. national.
4. Write “Nonresident Alien” or “NRA” on the dotted line on line 6. You can request additional withholding on line 6 at your option.
5. Not claim “Exempt” withholding status on line 7.
Hi. I am a full time school teacher and am married. Both my husband and myself claim 1 on our W4. I just got a summer job, which only pays $2,500 for the whole summer. Since it isn’t a stipend, they are withholding taxes. What many allowances do I state to maximize my paycheck? Should I have 1 allowance or 2 allowances for this summer’s W4 form?
Thanks
Hi Jodi,
In order to maximize your take-home pay for the summer, you’ll want to claim two allowances over just one. The more allowances you claim on your W-4 form, the less is withheld from your income (and vice versa).
Hello,
I am married filling jointly. We have a 1 year old and are in the process of getting custody of my husbands 3 kids. I have a full time job and my husband was just recently laid off. What should I be claiming? And should I change it if he starts working part time or full time? We would like to get a refund come tax time….
Thanks!
Hi Dawn,
Whereas I would typically suggest completing your W-4 form to reflect how you will prepare your tax return, I think you may benefit more from claiming a lower amount of allowances as of now, especially because you would prefer a tax refund after filing for the year. Since you are not positive whether or not you will gain custody and be able to claim those three extra dependents, you may not want to take any chances. This is one of the reasons that the IRS gives you a bit of leeway when it comes to completing your W-4 form. You may want to follow along with the Personal Allowances Worksheet on page 1 of the W-4 and then update it with your employer as different life events occur (ie: you gain custody of your husband’s three children). If your husband starts working again, you may want to consider having the spouse whom earns the higher income claim the majority or all allowances on their W-4. You do not want to both claim all allowances.
Hello there, I am newly divorced, no kids, no dependents and no one can claim me as a dependent. I do not want to owe the government. I also do not want too much taxes taken out of my paycheck either. Getting a return back at the end of the year would be great too. So basically my question is, how can I get the biggest monthly check, without owing money? Thanks in advance for your help!
Hi Keston,
Based on what you have said in your above comment, your safest bet would most likely be claiming one allowance. I would not suggest claiming more than two allowances if you would prefer to receive a tax refund after filing. Keep in mind that you can update your W-4 with your employer at any point. If you take a look at your pay statements and feel that too much or too little is being withheld to cover taxes, it may be smart to update your W-4 form again.
Hi,
I am newly married, no children, and am starting a new job. What can I claim legally to make sure I don’t owe money after filing?
Hi Rachel,
Congratulations on tying the knot!
When completing your W-4 form, you have some leeway with how many allowances you can claim. The more allowances you claim, the less is withheld from your paychecks while the less allowances you claim, the more is withheld. You are issued a refund when too much is withheld and end up owing when too little is withheld. That being said, the tax you owe is constant. Your W-4 only helps to determine if you will pay after filing or throughout the year through your withholding. The ideal situation is to break even and not owe money or receive a refund from the IRS. If you prefer to pay as little as possible after filing (or receive a refund), then you can claim zero allowances on your W-4. In order to calculate the maximum amount of allowances you could be claiming, then I suggest using the Personal Allowances Worksheet right on page 1 of the W-4. Although this worksheet is not required, it will take into account your personal tax situation.