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!
my 18 year old will be a full time college student living at home and working 20 to 25 hours a week. What should he claim on his W4 form? And should he claim “1” on his Indiana state form?
Hi Cheryl,
I suggest taking a look at the IRS Withholding Calculator to determine how many allowances your son/daughter can claim. This only takes a few minutes to complete and will give you the most accurate amount of allowances to claim to reach that break-even point at the end of the tax year.
My 18 year old will be a full time college student living at home and working 20 to 25 hours a week. What should he claim on his w4 form. And should he claim “1” on his state form
Hi Cheryl,
I would suggest that your son claim zero allowances on his W-4.
You can also take a look at the IRS Withholding Calculator as another reference point.
I just started a new job after leaving another company after two weeks notice. At this company we are doing our own payroll, I was told I have to claim 0 as a single and no dependent, but I’ve been claiming 1 allowance at my other jobs. Which is the best to use?
Hi Sarah,
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
In your situation, by claiming zero allowances, you will see less money in each paycheck but will have a higher refund come the end of the tax year.
I am single, no kids no one can claim me as a dependent . also I have to jobs a part time and a full time. can I claim 2 allowance at my full time and 0 at my part time without having to own money at the end of the year
Hi Randy,
You can claim two allowances at one job and zero at the other or claim one allowance at each job.
Before choosing, I also suggest taking a look at the IRS Withholding Calculator. This will give you the most accurate amount of allowances to claim based on your current circumstances. It only takes a few minutes to complete and will help you to reach that break-even point at the end of the tax year.
My husband and I got divorced, we share custody of two children. I do not work, he pays support.
How many should he claim?
he right now claims married zero because the divorce is not final. We sold our house and really have no deductions. He is getting taxed like crazy.
Hi Jane,
By claiming zero, your spouse is having the highest amount of taxes withheld for each paycheck.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
I also suggest taking a look at the IRS Withholding Calculator as a second point of reference. This will only take a few minutes to complete and will give you the most accurate amount of allowances to claim based on your current circumstances. It will help you to reach that break-even point at the end of the tax year.