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!
I have a question. Last year was my first year to file my taxes with my husband. When I asked the agency to see how much taxes I would get back without us filing jointly. I was almost nothing. On my W-4 I claim 0 and pick myself up at the end of the year. I make almost $40,00.00 a year. What can I do to get a bigger tax return?
Hi Sonja,
In order to claim a larger refund come tax time, you can research some deductions and credits that you may qualify for. Also, have you tried our tax calculator? It’s free to test out and accurate based on IRS guidelines for the year. It is possible that your current tax preparer is not considering all factors when calculating your refund. Claiming zero allowances means that the maximum amount of income is being withheld for taxes to the IRS. The only difference that you could make is to have an additional amount withheld from your paychecks or reconsider filing as married joint tax return.
I am an exchange teacher from Jamaica. My state filing status is single, with zero allowances but state additional 38. what does this mean and will it affect my filing.
Hi Gavin,
Based on the information you have provided, it seems as though you completed a state W-4 form. Is this correct? If you are seeing that an additional $38.00 is being withheld from your paychecks, then that typically means that the employee (you) chose to do so. If you are unsure, contact your payroll department or employer and they will be able to tell you further if you did this or not.
Hi, my husband and I file jointly. We have 2 kids, he has one full time job, and I have one full time and one part time job. We currently are claiming 0 allowances on all W4s. I know we can claim more, just not sure where to start and how to divide them. We have student loan interest, mortgage interest and child care expenses we deduct every year as well.
Thanks!
Hi Rosie,
Considering your tax situation currently and that you are both claiming zero W-4 allowances, you and your husband are having the maximum amount of income being withheld from your incomes for taxes. You are correct; you can definitely increase this a bit so that you are seeing more in your take-home pay throughout the year. Here’s how allowances work. The more you claim on your W-4, the less is withheld from your paychecks. This is beneficial in that you are receiving more in each paycheck but could result in a tax due to the IRS after filing. The less allowances you claim, the more is withheld from your pay for taxes due to the IRS. This sometimes results in a tax refund if too much is withheld. The actual amount of tax you owe to the IRS is the same. The W-4 only controls when you will pay; in one lump sum after filing or little by little throughout the year. A basic rule of thumb to follow is claim one for yourself and one for each dependent you can claim. Between your husband and you, that comes out to four allowances. You can split those evenly (recommended if you earn about the same amount of income) or one spouse claim the majority (recommended if one spouse earns significantly more than the other).
I suggest starting with that and seeing how much is being withheld for taxes. You can always update your W-4 when necessary.
Hi i am a single mother of two and am confused about deductions and allowances. How much should i put for both 1,2,3? Should i use head of house or single? Also i get the child tax credit.
Thank you please respond
Hi Shea,
Not to worry; most taxpayers find the W-4 confusing. This form is where you will find the most leeway from the IRS. The W-4 determines when you will be paying the tax you are liable to pay to the IRS. The more allowances you claim on your W-4, the less is withheld from your paychecks throughout the year. The less allowances you claim on your W-4, the more income is withheld from your paychecks. If too little is withheld throughout the year, then you will owe the IRS after filing your tax return. If too much is withheld from your paychecks throughout the tax year, then the IRS will issue you a tax refund after you file. Although the ideal situation is to have your W-4 reflect how you plan to complete your tax return, it doesn’t necessarily have to (within reason of course). As a single mother claiming two dependent children, you can claim at least three allowances. That being said, claim additional allowances following the Personal Allowances Worksheet instructions if you would prefer to have more pay throughout the year. Do the opposite if you would like to receive a larger refund. In regards to your filing status, head of household tends to be more beneficial for most taxpayers. Do this if you qualify to do so.
Hey,if i receive a w2 from a temporary company ,and on my w4 Im claiming one allowance! But I get a w2 from my permanent job and I’m claiming 0 allowances on my w4 will I be penalized when I file??
Hi Jamul.
You will not be penalized for how you choose to complete your W-4. The amount of allowances you claim on your W-4 determine when you will pay the tax you are liable for to the IRS. The more allowances you claim, the less is withheld from your paychecks. This can result in a tax amount due after filing for the year. The less allowances you claim, the more is withheld from your paychecks. This can result in a tax refund after filing if too much was withheld from your pay.