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!
Hi,
I am single and working a full-time internship and a part-time internship.
I don’t know what to claim on my w-4s. Right now I am claiming 1’s on my full-time but am getting 26% taken out of my paycheck, which is a ton if you ask me. I don’t want to owe the IRS but I want more of my paycheck.
Not sure what to do?
For help with your withholding, you may use the IRS Withholding Calculator. This easy-to-use calculator can help you figure your federal income tax withholding so your employer can withhold the correct amount from your pay. This is particularly helpful if you’ve had too much or too little withheld in the past, your situation has changed, or you are starting a new job.
I am single and work as an independent contractor in different conpanies. This year I made about $4,000 from august to Jan. How many allowances should I put? Am I exempt from withholding federal taxes?
Thank you!
No you are not exempt from withholding federal taxes. Since you have no employer to withhold federal taxes, then you will need to do this by making estimated tax payments.
Hello,
I have a quick question, I am married with no dependents (my son makes to much money for me to carry him on our taxes). We will need to file together and claim only two is this correct. One more thing should my husband claim zero (0) and I claim one (1) on our W-4, would this even out our taxes or do we both have to claim the same amount? I’m trying to break even and not have to owe.
Hi Denis,
The way you complete your W-4 form is based more on your preference. If you would prefer to receive more of your income throughout the year and pay the IRS what you owe in tax after filing, you would claim higher allowances on your W-4. If you want to have more of your income withheld throughout the year so that you are covering what you owe in tax to the IRS that way, then claim lower allowances. Claiming zero allowances allows the maximum amount to be withheld from your paychecks throughout the year. This typically results in a refund since more than enough taxes will be withheld from your income. If too little is withheld, then you will have a tax bill after filing. The actual amount of tax you are responsible for remains constant and is only adjusted upon filing your return.
In regards to filing a joint tax return, you would basically treat your W-4 forms as one. This means that you will split the amount of allowances you claim. It is not mandatory that you claim the same amount of allowances on each W-4. In fact, most married couples will have the spouse earning the larger income claim the majority or all allowances while the spouse earning less claims less. This allows you to have a good amount of take home pay throughout the year while also covering the amount you owe in tax.
So I will be filling out a new w-4 for 2017. I would like to know what my husband and I should put down for allowances. We are married and we have 2 kids. We both work full time but he makes more than I do. Last year we both filled out our w-4 married with 2. Because he makes more than I do, should he put down married with 1 and I would put down married with 2? Or should we keep it the way it is? I would like to see a little more at the end of the year.
Hi Michelle,
That is correct. If you would like to receive a higher refund this year after filing, then it would be in your best interest to have your husband lower his W-4 allowances. This means that more will be withheld from his income so he will see less take-home pay. If this doesn’t end up working out for you both, then keep in mind that you can update your W-4 forms whenever you see fit and it will be put into effect by your employer immediately.
I am married with one child currently on my w4 I have 1 allowance and my husband also has 1 allowance. When we file our taxes we file married filing jointly and we say we have a dependent and we put in our sons name. Should we claiming more allowances on our w4 to account for our son?
Hi Nicole,
It’s up to you but based on your situation, you probably can claim more allowances so that you have more take-home pay throughout the year. The ideal situation is to have your W-4 reflect how you plan to file your actual tax return. This is how you break even. However, you do have the option to adjust how you pay the tax you owe to the IRS. The more allowances you claim, the less is withheld from your paychecks. This can result in owing the IRS if too little is withheld to cover taxes. The less allowances you claim, the more is withheld from your pay. This can cause the IRS to issue you a refund if too much is withheld throughout the year. If you are claiming two allowances between you and your husband now and you feel that too much is being withheld, then consider the spouse earning the higher income claim an additional allowance on their W-4.
It’s also important to keep in mind that your W-4 form can be updated when you see it necessary.