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,
Currently I have been working at my new job since March and I am the head of the household within my home. I am married and we have 2 children. My spouse is not employed. I am trying to file tax exempt for the remainder of the year….and I am wanting some help regarding the number of allowances I should claim.
Please advise.
Thank, you
Since you are married, you cannot claim head of household, as this filing status would not be applicable in your situation. From the situation that you have outlined without accounting your salary, dependent care expenses, child tax credit, your claim of allowances would be 4. It may be best for you to speak to your employer or payroll department, or use the IRS Withholding Calculator for further assistance.
Hello,
I am engaged with one child. He makes more than me and is head of household. im wondering what i should claim on my taxes. i always feel like i get way more than i shiould taken out and i never get a good refund. I also believe i qualify for the child tax credit but im not sure. i make under 50k. please help!!
When claiming more allowances, you will have fewer taxes withheld. If you choose to claim fewer allowances, your taxes will be higher with your income being withheld to the maximum amount for each paycheck cycle. The IRS withholding calculator may also help assist you in this matter as well.
I have my mother-in-law come over to my house during the work week to care for my son. I pay her cash. When I file taxes, can I claim “day care” expenses for that? And how does that affect her? She is retired.
For a family member that is taking care of your dependent that is not your spouse, you have the right to claim the credit for the expense that you incurred. However, this will affect how they will be filing their tax return, as well as you being responsible for filing certain forms and reporting the income that you paid to your relative if you wish to claim the credit.
From the IRS Website you will be able to see the breakdown of how this will affect the filing of your tax returns.
Hello,
I am single, have no dependents, and work two part-time jobs. I have 0 exemptions for one job but when I got my second job, I claimed 1 exemption each for federal, state, and city taxes. I also noticed that on my first two checks from this second job, absolutely no money was withheld for federal or state taxes. I’m not very financially savvy so I’d like to ask: is this normal? And is it an ideal scenario given my standing? I want to make sure I do not owe any taxes come next year. Thanks!
We won’t be able to fully advise you on the situation, as your salary and personal situation is a factor that needs to be taken into consideration. When claiming no allowances, the taxes withheld will be higher. Vice-versa your taxes will be lower throughout each check when claiming more allowances. You may want to discuss this with your employer.
Hello,
I am a single mother, just moved last year in the beginning of march so will I be be able to claim head of household when I do taxes? I currently claim 0 because I prefer the large refund, but if I claim 1 or 2, is there any way of knowing how much it will effect that? I’m in a situation where I may need a slightly larger paycheck bc I will be taking a small hit on my work hours. Thank you!
Hello Ashlen,
Filling out your W-4 is entirely up to you. The more allowances, fewer taxes are withheld from each paycheck. This may result in you having a tax liability. On the other hand, fewer allowances, more taxes are withheld from each paycheck. thus, you are more likely to get a higher refund. You can check with your Payroll Department for further assistance.