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 need your assistance. For the past two years my tax refund has been under fifty dollars. It has been very low. I am not sure if I have been filling out my W-4 correctly, so that I can get the most money back. Hence, I am single person with a part-time job taking care of my mother who I claim as my dependent ( I take care 100% of her expenses). It is a hardship to take care of another adult since I am below poverty line.
As of now, my federal tax withholding/exemption is 4: Myself no one can claim me (1) Because I am single with a job (1), Dependent (1) and head of Household (1). So, the total added is 4 Total of number of allowances.
Am I doing something wrong here? Because my tax refund is extremely low! I can’t have them take out more out of my check I barely making ends meet. Do you see my dilemma?
Also, do I qualify for Child and Dependent Care Credit? Does my situation qualify for this tax benefit? Do I need to enter “1” on the personal allowance section of the W-4 form?
FYI: I can never get the earned income credit because I am over the limit but not by much.
So, I am hoping you can help me to make sense out of this situation. Thank you!
Hi Kia,
Using the Personal Allowances Worksheet does not necessarily work for getting the maximum refund or even breaking even. I find that it tells taxpayers the maximum amount of allowances they should be claiming. Unfortunately, this tends to result in owing the IRS after filing. That being said, the IRS gives you pretty much full reign to complete your W-4 as you see fit based on your tax situation throughout the year. The more allowances you claim, the less will be withheld from your pay to cover tax owed. The less allowances you claim, the more will be withheld from your pay to cover tax owed. You’re issued a refund if too much is withheld from your pay. You owe the IRS if too little is withheld throughout the year. However, the actual amount of tax remains the same. The IRS just determines when you pay it. If you feel that claiming 4 allowances gives you a smaller refund than you would like, then you would need to consider claiming less allowances. This would mean that more would be withheld from your income throughout the year. In order to see if you qualify for the Child and Dependent Care Credit, you can check out the IRS website page discussing the terms further. You can have access to that HERE.
Sorry for the late reply. I wanted to thank you personally for responding to my urgent inquiry. I just read your detailed answer which was extremely insightful because I was feeling helpless and anxious over my finances. I will take this information to heart because I just did my taxes yesterday and I owe IRS. I am not happy with this situation but at least I owe 8 dollars. I am not kidding about that dollar amount but its affordable. I was just disappointed that I did not get anything back this year so I going to take your advice because I am sick of this unfair situation. So thank you again. Have a good week!
Fabulous! I am happy I was able to provide you with valuable information to complete your income tax return. Thank you for visiting our blog and your feedback is highly appreciated.
I want to know it I can file by myself since I have a job and not file with my husband. We have 3 sons
Hi Kiida,
You have the option to file as Married Filing Separately. Keep in mind that if you do so, your husband would also need to file as that filing status. He would not be able to file a joint tax return. It will be rejected by the IRS.
Wondering what to put on my W4. I am a head of household, one child, and single. I DONT mind not getting a huge refund because I know the whole tax thing is changing for next year. I don’t want to owe taxes either , so what should I put on W4
Hi Lauren,
I suggest claiming two or three allowances on your W-4 based on the information you provided. If you would prefer more take-home-pay throughout the year then claim three. If you prefer to have a higher refund then claim two. Either way, you should not owe the IRS after filing for the year if the information is correct.
Good morning! Thank you so much for taking the time to help us all with our doubts. I am married, I earn 2,000 p/month and my husband $12 p/hour in a full time job. How many allowances should each one of us claim to get a tax return at the end of the year.
Thank you very much!
Hi Mary,
You’re very welcome! Happy to help!
Your W-4 determines at what point of the year you will pay the tax that you owe. The more allowances you claim, the less will be withheld from your paychecks for taxes. The less allowances you claim, the more is withheld from your paychecks. The IRS issues you a refund if too much is withheld from your pay throughout the year. You will owe the IRS if too little is withheld. If you would prefer to have a higher refund after filing but less take-home pay throughout the year then claim less allowances. I suggest claiming one allowance each on your W-4 forms.
Hi there! I am going to college as a full time student (junior status) and I live with my dad. I do pay for all my own expenses and work two jobs (I still only get about 30 hours a week even with both). I was previously claiming 0 allowances due to not knowing what to put, but read some articles and changed it to 2 allowances. Is that the right move? I would love to get a large refund at the end of the year (so I can get a car of my own) so I would appreciate any help, thanks!
Hi Andie,
If you want a maximum refund, then you can stick to claiming zero on your W-4. This allows your employer to withhold the maximum amount of taxes from your paychecks. Here’s how allowances work. The more you claim on your W-4, the less tax is withheld from your income throughout the year. The less allowances you claim, the more tax is withheld from your paychecks. 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. The actual amount you owe is the same. The W-4 just determines if you’ll pay it in bulk after filing or in smaller increments throughout the year.