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!
Im a single parent with one job and i still live with my mom and im confuse on what i should be claiming on my w4 1, 2, or 3???????
If you are not being claimed as a dependent by your mother, and under the situation of being a single parent, with one job, filing head of household with one dependent. You can claim between 3-4 allowances. However, you must follow the instructions accordingly and claim only the allowances you know that pertains to you. The higher number of allowances you claim, the more likely you will end up having a tax liability.
I have a question! I am so confused on how to fill out my W4 although i already filled it out.
I’m single, 0 kids, 1 job… but I put 2! Because I remember on the paper it says add Line H with Line A and that’ll be the total so I put 2. Someone help!! Did i do it wrong?
Hello Kendra,
You followed the instructions on the W-4 and 2 Allowances are correct.
Is exemptions the same as allowances?
No Exemptions not the same as allowances. Exemptions are claimed on your Form 1040. They reduce your taxable income and subsequently your income tax. You are allowed one exemption for yourself, one for your spouse, and one for each qualifying dependent.
Allowances are claimed on Form W-4 when you begin a new job. Each allowance you claim reduces the amount of your income that is withheld for taxes.
I’m married and we are a one income family. I’m preparing my W-4 and the allowance worksheet indicated I could claim 3, 1 for myself, 1 since I’m married and my spouse doesn’t work and 1 for my spouse.
Would it be correct to enter 3 as my allowances.
also, what would be the benefit of filing as “married, but withhold at higher single rate” as opposed to filing “married”
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. Speaking with payroll will better inform you on the best number of allowances you should claim on your W-4.
You can use the IRS withholding calculator to help you determine how many allowances you should claim on your W-4 Form. Click here to try the IRS Withholding Calculator.
I’m single, have 2 jobs and 2 children. I’m not anyones dependent and this will be the first time I claim my children. I currently live with my parents because of unfortunate situations. My first jobs tax form I put 3 allowances but I’m not sure if I did that correctly. My second job they told me to put 1 allowance. I honestly don’t know what I am doing. I can use any help, thank you
Speaking with payroll will better inform you on the best number of allowances you should claim on your W-4. Typically you would like at the end of the year, to owe a small amount or receive a small refund. That way you can utilize most of your money earned throughout the year rather than having it sit until next year.