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 father working a full time and a part time job I have 2 children but will only be claiming 1 since my youngest lives with me. How many allowances or dependents can I claim. Should I list my other child also as I do pay child support but she does not live with me?
Hi Joseph,
You want to have your W-4 form reflect how you will complete your tax return for the year. The more allowances you claim, the less is withheld from your income to be applied to taxes. This can result in a tax due amount if too little is withheld. The less allowances you claim, the more is withheld from your income. This is when tax refunds are issued; if too much is withheld over the course of the tax year.
If you are only claiming one dependent child on your tax return, then claim allowances for that child. You can claim additional allowances on your W-4, however, you could end up owing the IRS after filing for the year due to too little tax being withheld from your pay throughout the year.
Thank You, my last question is about me working 2 jobs would I me claiming 3 allowances at my full time job (myself, my child and my other job) and claiming 0 at my part time be a decent idea?
Yes, that is what taxpayers in similar situations to yours tend to do; claim more allowances at their higher earning job. It’s similar to how joint filers will have the higher paying spouse claim the majority of allowances on their W-4.
You may also want to take a look at the worksheet on page 2 of your W-4, “Two Earners/Multiple Jobs Worksheet“. This will help you to determine if you should have an additional amount withheld from your paychecks throughout the year so that you don’t end up owing the IRS after filing.
Hello,
I am in the military and still pay Indiana state taxes but I live in Florida because I am stationed here. My wife currently has a job here and we don’t have any children. What should I claim on my return? And should I still be paying state taxes for Indiana? Last year I ended up having to pay extra to Indiana.
Hi Tyler,
You may want to reach out to Human Resources about updating your permanent residence on file with them. If you are no longer living or working in Indiana, then you should most likely not be held accountable to pay state taxes there.
Hello
I am a single 46-year-old man, been claiming 0 on my forms , last year I filed for my mother who is 78 years old to migrate to the USA, I want to claim her as dependent and get less money taken out of my paycheck and get more money when I file my tax returns , how many do I claim if my mother is dependent on me now, is it 1 or 2 on my w4?
thank you
Hi Abbas,
The more allowances you claim, the less is withheld from your pay throughout the year. The less allowances you claim, the more is withheld from your paychecks throughout the year. You are issued a refund if too much is withheld and you’ll owe if too little is withheld. I would suggest claiming 2 allowances if you are eligible to claim your mother as a dependent. However, you can always claim less if you prefer a larger refund. The actual amount of tax owed remains consistent. The W-4 form only determines when you will be paying.
Hi,
No of jobs – 1 , Status – Single
Qualify for “1” on both sections A and B on the W4 form. So a total of 2 allowances.
So should I claim 1 allowance as it is ideal according to this article or 2.
Thank you.
Hi Amin,
Claiming either one or two allowances on your W-4 based on the information you provided above will benefit you. It depends on how you would like your tax situation for the year to play out. If you would prefer to collect more take-home pay throughout the year and receive less of a refund from the IRS after filing, then claim two allowances. If you would prefer to have a larger refund with smaller paychecks throughout the year, then claim one allowance. The choice is yours when it comes to completing your W-4 form since the overall amount of tax you’ll be paying remains the same.
My husband and I filed jointly for the first time last year. When I asked what the tax return would be filling separately it was going to be the lowest tax refund I would have ever gotten.
I make roughly around $35,000.00 a year. I claim “zero”allowances and claim myself on my income taxes.
I was wanting to see how do I get more money back on my income taxes?
Hi Sonja,
Filing a joint return and claiming zero allowances on your W-4 form would allow you to receive the maximum refund. I’d also suggest looking into any additional deductions or credits that apply to you.