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 am single, I have no dependents and I rent a room at my cousins house, I do send money to help out my family out of the country, does that count as part of an allowance?. how many allowances should I put on my W4?
I don’t want too much money withheld from my check but I also don’t want to owe money at the end of the year, Thanks
Hi Michelle,
You would first need to determine if any family members qualify as dependents for tax purposes.
I suggest then taking a look at the IRS Withholding Calculator to help you claim the most accurate amount of allowances to reach that break-even point at the end of the tax year.
hey I file married jointly. i have 4 eligible children dependents. my income is 80k annually. how many allowances can i claim and not owe at the end of the year. hopefully a refund. thanks!
Hi Frank,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim based on the information that you provide. Keep in mind that this tool gives you the amount of allowances to claim in order to reach that break-even point at the end of the tax year.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
I am head of house hold with two job’s, I’m also single I just don’t know what to claim. I also have a baby before the year is up? Please help…
Hi David,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim to reach that break-even point at the end of the tax year based on your current circumstances and the answers you provide.
I am single,no one else can claim me. I have One child. How many allowances can I claim on my w4.
Hi Dej,
You can claim two allowances. I also suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you an accurate amount of allowances to claim based on the specific answers you provide.
im am not married but i live with my boyfriend. We have a daughter together. How many allowances should i claim
Hi Lizbeth,
I suggest referring to the IRS Withholding Calculator. This only takes several minutes to complete and will give you the most appropriate amount of allowances to claim based on the answers you provide. Some factors that the amount of allowances you claim depends on is who qualifies as your dependent, who is employed/unemployed in your household, etc.
I ADDED UP THE LINES A-H AND GOT A 10.IS THAT OK
Hi Dawn,
When finding the amount of allowances you can claim using the instructions your W4, you are calculating the maximum amount you are allowed to claim. Therefore, you can always claim less allowances.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
I also suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.
I just got married. I make $175k a year before bonus and my wife makes $75k. We have no kids. How would you recommend setting up our W4/allowances?
Hi Jeff,
Your withholding will most likely be most accurate when all allowances are claimed on the W-4 for the highest paying job. Also, I suggest taking a look at the IRS Withholding Calculator as a second reference point. It only takes several minutes to complete and gives you the most accurate amount of allowances to claim based on the answers that you provide.