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!
Ever since my husband and I got married in 2011. I have filed as Married at a single rate and 0 exemptions due to his self employment. Now I have a new job with higher pay and we have 2 children. I am confused on how many exemptions I should claim on my W-4. At my current status, we will get back a big refund but honestly we could use the money more now than at tax time. I understand I can claim 1 for me, 1 for each child so 3 so far, do I claim an allowance for my husband since he has a separate self employment tax. My goal would be to get closer to breaking even come tax time.
It would be best for you to contact payroll and discuss with them what would be the best number of allowances you should claim. The general rule of thumb is that the more you claim, the lower your taxes, but it may put you within a tax liability when you end up filing your return.
The IRS also 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.
I have my mother and father as a dependent on my income tax. I would say im the head of household. How do i fill out my W4?
From the situation that you have outlined, the number of allowances you can claim would be 4-5 allowances. However, do note that the more allowances that you claim the fewer taxes get withheld from your income. You should use the IRS Withholding Calculator to assist you or speak with the payroll department for further advisement.
im single and living with parents what would i put 0 or 1 on my w-4
Hello Ryan,
According to the instructions on the W-4 form, you would most likely put down 1 allowance if your parents are claiming you as a dependent. If they are not claiming you as a dependent, you would most likely put down 2 allowances. Other factors not mentioned in your comment could affect this number. However, you may also choose to enter zero allowances if you want to avoid having a tax liability at the end of year.
My wife and I recently got married. She just got her first job and I worked from January-May 2017. Currently I am unemployed because we moved cross country. I’m not sure when I will get another job (whether it will be soon or if I end up going back to school). We also aren’t sure if we are filing taxes next year for the first time together as joint or separate (due to her student loans and it maybe being more beneficial to file separately).
How many allowances should she put on her W-4? 1 or 2? And also, should we mark “married” or “married but withhold at the higher single rate”?
Thanks.
Depending on whether you are filing jointly or separately, the number of allowances to claim would be around 2-3. It would, however, be best to use the IRS withholding calculator to assist you in finding a number of allowances or speaking with your payroll department for further assistance.
I am a college student doing an internship this summer (3 month internship). My parents claim me as a dependent on their tax form; household is 4 people (2 parents, me, a younger sibling). I’m single, not married, no kids of my own, etc.
Can I put 1 for federal allowance and 0 for CA allowances? Or should I do 0 for both?
Thank you for your help!
I’m just paranoid because my friend is also interning at the same company and her paycheck was less than mine (perhaps due to how many allowances she put because we are paid the same rate) and I’m worried I did mine wrong and will be penalized. Thank you!
The more allowances you claim, the lower amount of taxes will end up getting withheld from your paycheck. The closer you are to 0 allowances, the more taxes are withheld from your paycheck. Claiming 0 allowances means that you will be taxed be the highest rate. It is advised that you speak with your payroll department in order to determine the number of allowances you should take on your W-4. You can also choose to use the IRS Withholding Calculator Tool to assist you in determining this value as well.