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 live in a house with 5 people (including me), one is my girlfriend (we have together 7 years) and everybody work, I got a job recently and I would like to know what is the best approach. I am not the head of household (is my brother in law). I want to do the right thing and not to owe anything.
Thank you!
It would be best if you speak with your payroll department as they can advise you best on how many allowances you should take. You can also use this IRS withholding calculator to help assist you as well.
I am a single. Just had a baby so have one dependent. Work a full time job. How would I put my allowance in my w4. Single with 1 dependant. Do i put head of household? Or do i claim 2 allowance on w4 for just the two of us. It’s just me and my child and the fact i work a full time job
It is best if you consult with your payroll department as they will be able to better assess and advise you on how many allowances you should claim. Typically the more allowances you claim the less taxes are withheld but you may run the risk of having a tax liability at the end of the year. The general rule is to be as close to zero when filing your tax return, so that you can get the most out of your income earned through the year without having to wait for it in the upcoming year.
I am trying to determine the amount of allowances I should claim on my W-4. Recently divorced, I just changed from Married to single, but head of household. I hold a full time job $15/hr and a part-time job $9/hr… I have two kids 7 & 11… Noticed when I changed form Married to Single my net income reduced significantly and trying to make ends meet now. What do I do to get more bang for my buck? My full time job I get paid bi-weekly, my PT job I get paid twice a month… 15th & 30th… I don’t know what all information and what is too much… please advise. Thanks for your time!
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 rely heavily on a large tax refund to pay off the past years’ bills/expenses. I work 2 jobs (1 full-time and 1 part-time). I recently got married (have 1 child and 2 stepchildren) and was told that changing my w4 from single to married would benefit me come tax season. So, a few months ago, I went ahead and changed my w4 to married “0” at my part-time job. I noticed right away that my paychecks were larger. I am not sure how this works…paycheck is lager, but is this still going to benefit me as far as a larger tax refund? Doesn’t seem likely, so I am confused. I have been very hesitant to change my w4 at my full-time job, which is currently marked as single “1”. I don’t want to change anything and jeopardize not getting the max refund that I will need next year. I heard from an accountant who told me I could claim married “0” on both my jobs’ w4s and that would give me the biggest refund. Am I allowed to do this? And if so, is this really the best way to get a max refund come tax season?
Yes, you can claim “0” and married on both of your W-4 forms. It is always best to update your W-4 forms whenever there is a major life changing event, especially if you got married. Please be aware that married persons filing jointly qualify for a lower tax rate along with other deductions. If you do not account for your married status on your W-4, your with-holdings could be inaccurate. I recommend you use the IRS Withholdings Calculator to determine what allowances to claim on your W-4.
Thank you!
I am single with two children. Right now they have me on my W-4 at work with “Married, but withhold at higher Single rate” option, with no exemptions. Should I change that to just Single with 1 or 2 exemptions? or keep with “Married, but withhold at higher Single rate” with 1 or 2 exemptions? they withhold almost 500 a month of my check. I would like a decent pay and a decent refund at the end of the year? What do you suggest?
Your W-4 withholding should reflect your correct filing status. I advise your W-4 to Single with your employer. You can use the IRS with holding calculator to help you determine how many allowances you should claim on your W-4 Form. Click here to try the IRS Withholding Calculator.