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!
im a single filer with 1 Job and 1 child but his mom claims him on her taxes but I pay a set monthly contributions to her household as we agreed (no court order). I just started a new position at my job, significantly less money, and my projected income for 2015-2016 is about $38k. I’ve already paid $7.5k in taxes already leaving a job that paid commission. Do I change my allowances from 1 to [whatever] or just file exempt for the rest of the year since I’ve already paid my tax amount for the year?
Hi Patrick,
It would be in your better interest to claim a higher amount of allowances rather than claim exempt. I would suggest increasing your allowances to two as an alternative. This will give you a bit more take home pay but still have some withheld to cover taxes. You will receive any excess as a refund after filing.
Hello, my name is Alex
I reviewed my paystub and for federal and state of VA is says exemptions one for both. Does that mean I will owe taxes at the end of the year. I also, have two dependents and I am married as well and my husband works. I am really having a difficult time understanding the whole exemptions situation.
Thanks, Alex
Hi Alex,
The amount of exemptions you are seeing on your pay stub most likely reflects the amount of allowances you claim on your W-4 form. For the state, this number typically defaults to one. It does not necessarily mean that you will owe taxes after filing your tax return for the year. In fact, you could probably afford to increase the amount of allowances you are claiming on your W-4 form, based on what you have stated above. My advice to you would be to complete the Personal Allowances Worksheet on page 1 of the W-4 form and re-submit it to your employer.
Hi, I am single and I added up theblines A-G and had 2 allowance. When I getvmy check they are taking out over $100 dollars bi-weekly. I wanted to know is that right
Hi Q,
The amount that is withheld would depend on your bi-weekly income amount. I suggest speaking with your payroll department if you are doubtful about the amount they are withholding from your pay. You’ll want to double check that the withholding allowances reflect what your employer has on record.
Hi,
My partner and I got married on July 1st. We live in different households. She has a house and I live in an apartment. She has no dependents. She also earns more than I do. I have one dependent and I am a full time student. I don’t want to owe money next spring.
I am wondering, since we live in different households, how does filing married but separately work? I also want to make sure that I get my financial aid for the following year. So what is the best route when filing taxes next year?
Thank you.
Hi Elsa,
I would suggest updating your W-4 to married filing separately. This will provide you and your spouse with the tax benefits of being married while still remaining independently responsible for your own tax liability. When married filing a joint tax return, you and your spouse combine your adjusted gross income amounts and are taxed on that. You are both equally responsible for the tax due. Based on what you have said in your comment above, you are living separately, earning very different incomes and you have a dependent, it may prove more beneficial to file separately.
Hello……I was just wondering how many to claim on my w-4.. Im married work 2 part time jobs husband works full time and have 1 child.My husband makes more money than me.What should we put on our w-4’s?? Thank you!!