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!
My bf wants to change his w4 but don’t know what to change it to. It would be himself and one child, what would be the best where hes not paying out at end of year?
The IRS has a tool to help you determine how many allowances you should claim on your W-4 Form. Simply click here to use the IRS Withholding Calculator.
Hi,
I think I need to update my W-4. I am single, however live with my fiance of 5 years. I am the main provider at the moment.
I work one job and am also an independent consultant. At the moment I claim 1 and receive a large refund because of all my medical deductions. I am wondering if I cam claim 2, so I can have a larger paycheck? At the end of the year with all medical deductions I “should” still have a refund. What do you suggest?
Hello Lala,
Claiming 2 allowances results in less tax withheld on each paycheck. Please be advised that this post does not give recommendations on how to complete your W-4. You may inquire further with your Payroll Department or with Human Resources.
Hi, I am single, no dependents. Previously, I was married filing separately withholding 2 and I noticed they took less tax from my paycheck. Now that I am single withholding 2 the taxes taken out of my paycheck are more than before. Can I withhold 3? I don’t mind paying at the end of the year, I just want to have more of my paycheck throughout the year but I also don’t want to cause any issues with the IRS.
From what you say above, they won’t see my W4 anyway. Can you confirm? Thanks!
If at the end of the year you do not mind the tax liability but would like as much of your income earned throughout the year at your disposal throughout the year, it would not cause any issues with the IRS if you choose to claim more allowances. However at the end of the year you may be met with a large tax liability, but this is due to you, not having paid the necessary amount of taxes throughout the year. It would also be best if you consult with your payroll department, as they can assess and address your situation.
I am married, filing jointly and we have one child with one on the way. I have three on my W-4 form, but when we did our taxes this year, the tax consultant said I had not enough being taken out of my pay. She suggested changing my allowances. However, from what I’m seeing above three is correct. I’m so confused!
The number of allowances you can claim varies from person to person depending on your situation, if at the end of the tax year you find yourself having a huge tax liability, that is the result of you claiming too many allowances. It’s best if you consult with your payroll department from your company as they can better assess your situation and provide you an accurate number of allowances you should claim, or adhere to the advice your consultant gave you.
I have 2 dependents. Am I considered to be head of household or single? My 2 kids and I do live with my boyfriend. I have one job, pay rent and pay bills. My boyfriend does contribute financially as well. What will be the number of regular withholding allowances I should claim?
The Head of Household status generally applies if you are not married and have paid more than half the cost of maintaining a home for yourself and a qualifying person. Before you can claim your children as dependents, they must have lived with you for more than 7 months and you must have provided more than 50% of their financial support for the tax year. The IRS has a tool to help you determine how many allowances you should claim on your W-4 Form. Simply click here to use the IRS Withholding Calculator.