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!
Hello, I’m not married, live with my girlfriend, we have a daughter together and I also have 3 other kids, I pay Child Support for 2 of the kids, it gets deducted from my paycheck every two weeks, I heard that I can claim 9 exemptions on so my paychecks would be larger and I had it like that for like 3 months but last week I changed it to 0 and my paycheck went down dramatically. Every year I filed my taxes and Child Support Enforcement Ageny take my whole refund because I owe money. Should I change it back to 9 or what should I do. Please help.
Hi Joey,
First thing’s first; the amount of federal tax you pay for the year will not change. The W-4 form only adjusts when you will be paying that tax; whether it is throughout the year little by little or in bulk after filing. The more W-4 allowances you claim, the less is withheld from your paychecks. The less allowances you claim, the more is withheld. If too little is withheld, you will owe the IRS after filing. If too much is withheld, the IRS will issue you a refund. Even if you claim 9 allowances, this will not eliminate the amount you owe in child support OR federal taxes. You will just end up owing after filing for the year.
Hi,
I came to US in Aug, 2011. This is the fifty year after I came to US. Am I a residence alien or non-residence alien? I graduated in this June. I began my first job in this Oct. My wife has the same situation. She came to US at the same time with me. She graduated in this Feb and began to work in this Mar. We have no kids. How many allowances would you recommend to put down in my W-4? Thanks!
Hi P_H,
You are a resident alien of the United States if you meet the following two tests:
1–Green Card Test
2–Substantial Presence Test
If these two tests are NOT met, then you are considered a nonresident alien. For more information, take a look at the IRS website page about determining your alien tax status HERE.
I have a question. I have 3 children, and am filing single, head of household. How many allowances/deductions should I claim?
Hi E. Davis,
It is important to realize that the more allowances you claim on your W-4 form, the less tax is withheld from your paycheck. This could lead to owing the IRS after filing your tax return for the year because of too little being withheld. On the other hand, the less allowances you claim, the more tax is withheld from your paychecks. Claiming less can typically lead to a refund from the IRS.
In order to claim the maximum amount of allowances on your W-4, I suggest following the Personal Allowances Worksheet exactly. A few points to keep in mind- for line D, make sure that you are the parent eligible to claim those dependents on your tax return and for lines F and G, be sure that you are able to claim the credit(s) based on your tax situation.
Hello!
I’m single head of household and have two children, one small child and one in college. I claim both as dependents. How many allowances would you suggest be on my W-4?
Hi Dawn,
When completing your W-4 form, you’ll want to keep in mind how allowances work. The more you claim on your W-4, the less is withheld from your paychecks over the course of the year. The less allowances you claim, the more is withheld from your paychecks for tax over the year. If too little is withheld, then you will owe the IRS after filing for the year but if too much was withheld, you will be issued a tax refund. Remember that you can always claim less allowances than you are entitled to. Some taxpayers will even claim zero allowances on their W-4 form which allows their employer to withhold the maximum amount of tax from their paychecks. This basically ensures them a tax refund (not always but in most tax situations).
Based on your tax situation, if you would like to claim the maximum amount of allowances as you are eligible to on your W-4 form, then you will simply follow the Personal Allowances Worksheet on page 1. This will allow you to have the maximum take-home pay throughout the year. It could result in a tax liability with the IRS after filing. The ideal situation is to have your W-4 form reflect your tax return for the year.
so i’ve been looking all over for just a simple answer. im 18 with no kids and 1 job, and i was wondering WHAT NUMBER should i put down if i want more money in each paycheck and less in my tax refund?
Hi Peso,
If you would like more of a tax refund, claim a higher amount of allowances on your W-4. Typically, those in your tax situation can claim up to two allowances.