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 there,
I am recently married. My husband is a full-time student, but is not a qualifying person for me to file as head of household. I have always claimed zero allowances on my W-4’s. Should I now claim two allowances per your suggestion in the blog, or stick to zero allowances?
Thanks for your assistance,
Hi Cassie,
Congratulations on getting married!
Your tax situation will change due to marriage, however, you don’t necessarily need to claim more or less allowances. The concept of allowances remains the same, no matter what your filing status is. The more allowances you claim, the less is withheld from your paychecks throughout the year and the more you will owe the IRS after filing. The less allowances you claim, the more is withheld from your income over the year and the less you will be liable to fork over to the IRS after filing your return. This could also result in a refund if too much was withheld. Allowances only control when you pay the tax you are liable for to the IRS.
Hello,
I am working and married with 1 kid. What should be status in W4 ?
W4 – married and 3 ?
OR
W4 – married and 5 ? Please let me know which is correct ?
Hi Ramakrishna,
There is no right or wrong answer when claiming allowances on your W-4 form. The amount of tax you owe for the year will always remain consistent. The amount of allowances you claim only controls when you are paying that amount. If you claim high allowances, you’ll have less withheld from your paychecks and end up paying more at the end of the year after filing. If you claim low allowances, you’ll have more withheld from your paychecks throughout the year and in turn, pay less to the IRS after filing; or even claim a refund back. My advice to you would be to claim low to begin with and take a look at your next pay stub. If you feel that too much is being withheld, then claim an additional allowance or two. You can update your W-4 at any point and the changes go into effect immediately.
Hi,
I am married with 1 kid on my W-4. I have 0 allowances and my wife has 2 allowances on hers. What should we do?
Hi Louis,
I am assuming you will be filing a joint federal tax return. In that case, you can stick with claiming two allowances between both W-4 forms. Typically, the spouse earning the higher income will claim the majority of allowances. This tends to be most beneficial in the long run.
Hello,
I am married and I file as a head of household because my wife doesn’t have a job. I have 4 kids only one of them is a citizen.
Should I file my wife as a dependent or not? I want the least amount of taxes taken out from my paycheck and receive a large refund. What is the total number of allowance should I claim? Your advice highly appreciated.
Hi Jilani,
It is important to understand how allowances affect your tax situation before deciding how many you should claim on your W-4 form. The more you claim, the less is withheld from your paychecks throughout the year but the more you will owe (or the less your refund will be) after filing your return for the year. The less allowances you claim, the more tax will be withheld from your paychecks throughout the year but the less you will owe the IRS (or the more your refund will be). The amount of tax will not change whether you choose to claim high or low allowances.
That being said, your W-4 should ideally reflect your tax return. However, it doesn’t necessarily need to. The IRS allows you to complete your W-4 as you see fit, within reason of course. For example, if you prefer to claim an additional allowance on your W-4 because your wife is unemployed, then you will not be asked to prove it. However, you will most likely not be able to claim your wife as a dependent on your tax return.
hi
i’m single and i have just one job ..
so can I put S2 on my W-4 form?
Hi Zied,
The amount of allowances that you claim on your W-4 determine how much of your income will be withheld from your earned income to cover taxes owed to the IRS. The more allowances you claim, the less is withheld throughout the year. On the other hand, the less allowances you claim, the more is withheld throughout the year. The good news is that the IRS gives you some play when filling out your W-4 form. Since the amount of tax you owe to the IRS will remain the same, you are able to choose (within reason) whether you would like to pay that in small increments throughout the year or in one lump sum after filing your return for the year. That being said, the answer to your question is yes. You can claim 2 allowances with a single filing status. Just keep in mind that if too little is withheld from your income throughout the year, you will owe the IRS after filing.