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 a single mother head of household with 2 kids , how many allownces should I claim. and do u recommend me putting 2 as dependents?
Hi Stephanie,
If you are eligible to claim both children as dependents on your tax return, then I would suggest claiming an allowance for each of them on your W-4. If there is another parent involved, keep in mind that only one person can claim each dependent. Based on your tax situation mentioned above, I’d advise that you claim at least 2 or 3 allowances. If you would prefer to claim more, then fill out the personal allowances worksheet on page 1 of your W-4 form. This will give the maximum amount you should claim. Remember that the more allowances you claim, the less is withheld from your paychecks throughout the year to cover tax owed to the IRS. If too little is withheld then you will owe the IRS after filing. If too much is withheld, then you will be issued a refund from the IRS.
Hi,
I am married, no kids. My wife is a student and doing internship.
(1)
Should I claim 2 or 1 personal allowance ?
W4 #c says enter 0 to save little bit on tax. If I follow that then it means I am claiming 1 allowance else 2 allowance.
I understand that if married-filing joint – no kids then claiming 2 allowance will help to save on tax. So could not
understand that how entering 0 in W4 #c will help me to save a little bit. Any help is appreciated.
(2)
In Two earners worksheet,
If earlier in personal allowance sheet, I claim 1 allowance then as per two earner’s sheet – I do not need to pay anything more in byweekly pay check at row 9.
But if in personal allowance sheet, I claim 2 allowance then as per two earner’s sheet – I may need to pay extra in byweekly pay check at row 9.
Please advice.
Regards
Hi Chandrajit,
(1)
The more allowances you claim on your W-4, the less tax is withheld from your paychecks. The less allowances you claim on your W-4, the more is withheld from your paychecks. Taxpayers will claim zero allowances so that the maximum amount of tax is withheld from their paychecks throughout the year. This will typically result in a tax refund issued by the IRS after filing a tax return for the year. Technically, it isn’t changing the amount of tax paid but it is helping to avoid owing the IRS money after filing for the year. If you claim two allowances, less money will be withheld from your paychecks so you’ll have more take-home income throughout the year. This COULD result in owing the IRS after filing your tax return for the year. In your case explained above, it sounds as though you wouldn’t owe for claiming just two allowances. It will reduce the tax refund amount you are expecting.
(2)
The IRS suggests paying an additional amount in the two-earners worksheet since the more allowances you claim, the less is being withheld from your paychecks. This is a recommendation but not required. I suggest trying our tax calculator to get an idea of what your refund amount will be and them come back to completing your W-4 form accordingly.
I am single, Head of household with 1 dependent child. What allowance should I claim to get the least amount of taxes taken out of my paycheck? I just want a bigger paycheck.
Hi ROW23,
In order to get the least withheld from your paychecks, follow the W-4 personal allowance worksheet and claim the total amount that you get after answering each line/question. This worksheet always calculates the most allowances taxpayers can claim based on their situation.
if I claim 3 dependents and have 7 with held would have more on my paycheck?
Hi Termyria,
If I am understanding your question correctly, you are asking if you would receive more in your paycheck by claiming 7 allowances as opposed to only claiming 3. The answer is yes, you would. The more allowances you claim on your W-4 form, the less is withheld from your income throughout the year. On the other hand, the less allowances you claim, the more is withheld from your paychecks. You will receive an IRS refund if too much was withheld and you will owe if too little was withheld.
Hello there,
I’ve been reading through all the comments and ill still unsure on what i should do.
i am getting married in September and we have 1 child together and we are living together as well, should i keep my allowances at 0 for the remainder of the year or change it right after we get married and what would be the best option for us both to put for allowances?
i wanna make sure we have enough taken out but maximize our pay checks as well.
thanks in advance
Hi John,
You can complete your W-4 form based on how your filing status and tax situation look on the last day of the year (December 31st). In your case, you plan to get married in September. The IRS will consider you married for the entire year when it comes to your taxes so you can fill out your W-4 to reflect that.
Now, when it comes to how many allowances you should each claim, it is typical for the spouse earning the higher income to claim the majority of allowances. If you are earning about the same amount, then splitting the allowances evenly would make the most sense. You can continue to claim zero allowances. However, keep in mind that this will allow your employer to withhold the maximum amount from your pay for taxes. I would suggest that you each claim at least one allowance on your W-4 forms. You may also qualify for the child tax credit as well which would help you to justify claiming additional allowances. There is no right or wrong answer when completing your W-4 form since the IRS allows for a bit of leeway when doing so. If you feel that too much is being withheld from your paycheck, you can update your W-4 form at any time and it will go into effect immediately.