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!
Hi,
I am here on J1 visa, working in new York, and have 3 dependent. Can i fill W4 and clam withholding.-
Please advice
You will be able to claim a number of allowances, but this is dependent on your situation. When claiming more allowances on your W-4, fewer taxes get withheld through each pay period. This may result in a tax liability if you end up claiming too many allowances. Claiming conservatively and fewer allowances, however, will result in more of your income being withheld for taxes.
I am married and I was on H4 visa. After I got my H4 EAD, I started working in Aug 2016. My husband claim me as dependent. Now I changed my Job. In my previous job I entered ‘0’ at Line ‘A’. I am filling W4 form again in my new company. I am not sure what should I fill ‘0’ or ‘1’
When claiming allowances, the more that you claim, the fewer taxes get withheld from your paycheck through each pay period. However, this may result in a tax liability when it comes time to file your return. If however, you choose to claim fewer allowances, your taxes will be withheld at a higher rate for each pay period.
Im single and just graduated HS so this is gonna be my first job ever and and will be the only one im working till i feel a need for a new job, and currently on my form only have one claim i guess(?) for line A as im not being a dependent so how do i fill out line C: Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)?
Hello Jay,
The way you complete your W-4 is entirely up to you. However, that is correct. Entering “0” means more tax is withheld from you paycheck and may result in a refund come tax season.
I am single, and claim 2 as the instructions say for those categories. head of house hold is another one so I claim 3, will I owe alot during tax season? why do they penalize us for following the instructions on the form if not?
The W-4 is used to ensure that you receive as much of the income that you earn through the year as available income to be used instead of being held as a refund when you file in the next year. However, none of this is exact, which is why you should be conservative in your allowance claims as you can end up owing the IRS if you claim too many allowances. You can only determine exactly whether you owe or not, only if you know your previous year’s tax information, as well as your income, staying relatively the same throughout each year. You are not penalized for following the instructions of the form, if you end up with a liability, it may be because of several other factors associated with your individual situation.
Hi, were are trying to figure out what to put on my husband’s w4 at work. We are married with two children. We do want a refund at tax time, but we also need money now. Do we put married and 2 our do we put married and four. I’m not sure if we are supposed to count just the children of all of us. Thanks!
From the situation that you have currently outlined, your number of allowances may be 4. Typically you want your refund or tax liability to be as close to 0 as possible. This is to ensure that you are withholding enough of your income for the year as well as being able to use most of it throughout the year as well.