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 have 1 dependant and I work full time. In my w4 form that I filled out at work came up with 6 allowances and no federal taxes are coming out of my check…Will I receive a refund?? What allowances should I file and should I file head of household?? I would rather get more money back during tax time not now
Hi Amanda,
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 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 in order to reach that break-even point based on the specific information you provide.
I looked at it and according to it I won’t get anything and may owe…what do yuh recommend I do
My 14 year old daughter is going to work at a summer job for about 10 days. She will probably make around $600. She is my dependent. What should she put on her w4 form? 1 allowance or zero allowances??
Paul
Hi Paul,
I would suggest she claims zero allowances on her W-4.
I suggest also taking a look at the IRS Withholding Calculator as a second point of reference. It only takes a few minutes to complete and will give you an accurate amount of allowances for your daughter to claim based on her current circumstances.
Hello!
And I am single. I have no one to claim me. And no one to claim. I work two non full time jobs, With the hours together it would be over 60 hours. I got a new job at the beginning of 2014. Right now I claim 0 on both jobs.
Recently I just got a raise at work. Instead of seeing my checks increase, the checks I get every other week are less than what my paychecks would be before the raise.
I want to see more of an increase, because of my raise, but I DON’T want to pay anything when I file my taxes for 2014.
Why would this happen? And what should I claim on my jobs? I know my options are 0 or 2 from this article. But I am extremely confused over what would be better.
Hi Kimberly,
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.
Hello, i am having a hard time trying to figure out the right amount of allowances i should claim on both federal and state tax
the last two years i have had to owe and i am not sure why, i think it has something to do with my allowances…i am single with one dependent and will be claiming head of household…i am confused as to whether the higher you go they take out more or less, i would like to have taxes taken out that i wont owe this year and also that it will not hurt my check as much. when i calculated it said 7 allowances…i dont know if thats good or bad or if you have to claim certain allowances if you dont want to but are qualified… i will be claimind dependent care on federal w4…PLEASE HELP IM SO CONFUSED!!! And dont wanna owe for a 3rd year in a row!!!!
THANK YOU!!
Hi Shannon,
As a general of how claiming allowances works, the more allowances you claim on your W-4, the more money you will see with each paycheck because there is less money being withheld from each paycheck. Therefore, since there is less money being withheld throughout the tax year, you will have less of a refund at the end of the tax year (or a higher chance of owing).
Taking your situation into consideration, for example, you are claiming seven allowances. You are seeing bigger paychecks each pay period than if you were to be claiming three or four allowances. There is a smaller amount of taxes being withheld. This could be why you have been owing money for the past couple of years.
I suggest taking a look at the IRS Withholding Calculator if you haven’t done so already. It only takes a few minutes to complete and will give you the most accurate amount of allowances to withhold based on your current circumstances.
Hey so I normally claim 1 so that I can get more on my paycheck each week and always seem to get a decent refund back from taxes…I can claim 2 even though I’m single with no kids? I always thought it was either 0 or 1…if I did claim 2…if allowed to…would that drastically change the amount of my refund at the end of the year?
Hi Kelly,
Generally, a single person would only claim zero or one allowances. In a case where a single person has two jobs, they will claim two allowances at one job and zero at the other. As a single person with one job and claiming two, you may be faced with owing the IRS money instead of receiving the refund you usually do when all is said and done.
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.