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’m 22 years old and just started a new job. I’ve never been good at filing w-2’s but this year I’m currently working on being on my own. Right now I still live with my mom but i claimed 0 exemptions. I was thinking about claiming 1 but feared of having to payback during tax time. I’m unsure of what to do or how to file.
For your W-4, generally, it’s safe to claim at least one allowance. If you are not being claimed, this allowance amount would be at least two. If however, you are being claimed, and you are making less than the standard deduction [found on line 40 on 1040] for the year, the exemption status for taxes is available for you to claim, as this amount is tax-free.
I recently started a new job and had to submit a W-4. According to the worksheet calculations, it advised me to take 5 allowances (myself, single/1 job, head of household status, and 2 dependent children). My income is less than $60K/year and I do not plan to itemize deductions.
My question is, Is there anyway I can calculate what my tax impact will be for 2017 taxes? I am afraid I will owe taxes when I do my return in February 2018.
Hello Andrea,
I would recommend using what you have determined on the W-4 worksheets and calculations. However, if you want to be certain you will not have a tax liability, you may enter a number lower than 5. The IRS is not going to complain about overpaying them in taxes during the year. The IRS website provides a tool and calculators to help you estimate what your tax impact will be. Thank you.
IRS Withholding Calculator
IRS Publication 17 (Section: Pg 47/69: Wage Allowance Bracket Tables)
I work full time. We moved mid year so my wife left her job and will not get another one until next year. Our first child is due in November. Should I have the 3 allowances or are there other options?
Claiming 3 allowances on your W-4 would be for the best until next year. The same should apply for next year as well, however, in order to avoid having too few of your taxes being withheld, you may need to reduce your allowance amount to 2, following the instructions on line C.
Hi my husband and I both work full time jobs and have the max being taken out of our checks for taxes. We have two children. and i pay childcare for one. If I change my W4 from 0 to 4 will we end up owing even though my husband has the maximum amount being taken out of his? Please help!
Hello Erica,
You would likely end up with a refund instead of a liability. But the only way to make a definite determination is by filing a tax return or completing the worksheets on the W-4. You may also use the IRS withholding calculator in addition to worksheets to help you find the answer.
Hello. I am single, filing as head of household (I take care of all expenses associated with taking care of the house) I have no children, but am taking care of my senior mother. I’m paying out of pocket for people who stay with her when I’m at work so I’d like to claim 2 allowances so as to have more on my paycheck to help with expenses. I hope this isn’t a crazy question, but I just wanted to make sure this isn’t an issue where the IRS will later come and tell me it’s not allowable for me to claim 2 allowances when I have no children as dependents or some other such rule. I realize the tax refund may be smaller, but I just want to make sure I’m not breaking some law in claiming 2 allowances as a single person.
If you’re single and have one job, you have the option of claiming 2 allowances. You may get closer to your exact tax liability, but you this could still result in some tax due.
Thank you very much!