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!
I’m currently working part-time 20 hours, single, pay utilities, and just recently had a baby. I’m claiming 2? Is this correct or should I claim closer to 0??
It would be best if you consult with your payroll as to how many allowances you should claim, they will be able to give you a more accurate assessment.
My husband and I always file jointly. I am claiming 0. What I want to know is since we have 2 kids and need bigger checks should he claim 3? I don’t really understand a lot of this but I do know that the lower number of allowances means more tax withheld.
We cannot advise you on how to fill out your W-4, only to clarify how it works. You are correct, the high the exemption amount, the less is withheld. However, we would recommend you follow the instructions on the W-4 form. Please consult with your payroll department for further details.
Hello, I am single and support myself. I had a full time job but quit and now have 2 part time jobs and drive uber. Should I put 0 or 1 dependent on my W4? I don’t mind a smaller tax return if it means I get more money in my paycheck… but I don’t want to owe at the end of the year either.
Thank you!
Hello Lexi,
Claiming allowances are up to the taxpayer and every situation differs. The less allowance you claim, the more tax withheld on your paycheck, possibly resulting in either a refund or little to no tax.
Hi, I am a single mother with one child. I am currently claiming 1 on my W4 and I am getting way too much taken out of each check for taxes. I do not want to owe anything at the end of the year, I would like to get a least a little back when filing my taxes. Should I claim 2 or 3? Also which lines should I claim these? 1 for myself, 1 for being single and having one job, 1 for a dependent, 1 for head of household?
It would be best if you consulted your payroll department, as they will be able to better assess and provide you a accurate value as to how many allowances you should be claiming.
I’m married, owning a house (assuming $18000 mortgage interest and $5500 property tax write-off) for 2017. What should my allowance be? Furthermore, I bought this house with a solar panel (I own it), does that make my allowance higher? Thanks.
Hello Paul,
We will not be able to determine this for you. Your allowance can be figured by following the instructions and filling out the applicable worksheets (Deductions and Adjustments Worksheet) on the W-4 form. The solar panel might not affect your W-4 but it may affect your actual tax return.