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 am head of house hold with 2 children. Im not sure if im doing my w-4 correctly on the allowances usually I just write 2 on the w4 and the state taxes refund exemption. but this year I want the most of my paycheck. so I changed my allowances to 8 following the form. now im confused what number do I write on the state income tax form
It is advised that you speak with your payroll department in order to determine the number of allowances on your W-4. Typically the only way to truly determine the number of allowances you should take is from looking at your previous year returns and following the instructions on the form itself.
I am married, and my spouse and I both have full time jobs, we do not have any dependence. Can we both put 0 for allowances? I understand this will take maximum amount of taxes, and if we are lucky in the end we might get refund, and not owe anything to IRS. IS this correct? Can we both put 0 for allowances? Thank you in advance.
I would recommend following the instructions on the W-4 form. However, I doubt the IRS would complain if you choose both pay the maximum in taxes during the year.
I am a single mother and have 1 dependent. I stay with a relative and just got a summer job it is not permanent it is just for the summer. How many allowances should I claim for their W-4 form.
Hello Dede,
A good estimate would be 4. However, there are many depending factors that can change this number which can be determined by following the instructions on your W-4 form. Thank you.
Hi, I’m filling married for the first time. And I’m very confused how I fill my taxes out. I do prefer to get a larger amount in return then my actual paychecks. No one claims me. My husband and I both work.
Since both you and your spouse are employed, first determine the total allowances you’re both entitled to. Then, divide those total allowances between you and your spouse. The W-4 form has a worksheet for two-earner couples and allows you to figure the number of allowances you should each claim based on each income.
The IRS also has a tool to help you determine how many allowances you should claim on your W-4 Form. Simply clickhere to use the IRS Withholding Calculator.
I am married with one child(age 14). My wife and myself have been married for 16 years. I don’t think I claim anyone on my w-4. Come tax time, I get a decent refund. Should I keep doing this, or should I change my w-4?
You may want to claim some more allowances if your refund is a sizeable chunk. You will want your refund as close to zero so that you can get the most use out of your income earned throughout the year rather than having it waiting for you till the next year. However certain credits that increase your refund will only be refunded to you the year after when you have filed your return.