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 a single mother of 1. After I had my son, I changed my w-4. I entered:
1- for myself
1-for being single
1-number of dependents
1- head of household
So my total number of allowances is 4.
My employer brought it to my attention that there’s a good chance I will end up owing at the end of the year due to my number of allowances. Is this the case?
Would it be better for me to claim “0” instead from here on out? I only bring in roughly $15,000/yearly.
Thank you
Please keep in mind, the more allowances you claim, the less tax you are paying which may result in a tax due. If you claim 0 allowances, more tax will be taken from each pay. This is entirely up to you.
Hi,
How many allowances should I claim with a dependent and head of household. Also, can I file exempt when I work overtime? And if I file 0 with $20 additional amount out of my paycheck, will I get a refund?
Thank You,
Denise
The IRS provides a withholding calculator for you determine your allowance information. From the situation that you have outlined, the number of allowances that you may qualify for would be between 3-4 allowances. The fewer allowances that you claim, the more taxes get withheld from your earned income, so it would be for the best for you to claim some allowances.
If you are unsure of your taxable income and taxes withheld with the credits that you will be receiving, do no claim exempt as you may end up owing.
Can someone help?
I’m working 2 jobs. One job I only make <$200 a month. The other job I make about $40k a year. On my job that pays little, I put exempt in taxes since it's such a small amount of money. For the high paying job, I put 2 allowances. I live with my mom but pay for my own stuff so she doesn't claim me. Should I change my allowance at the $40k/yr job to 1? What is the best way to break even for me?
Thanks
Claiming two allowances would be fine for your higher paying job, however, when it comes time to file your return, you may owe some taxes for claiming exempt on your second job. The IRS also provides a tool for you to determine your withholding information.
Hello,
Thank you! We just recently married and would like to fill jointly. Neither have children. I have one job and my husband has two jobs. He has one full time job and one part time job. How do I fill out my W4? How does he fill out his W4?
Thanks,
Sarah
Your allowances are specific to how much income you will be earning within the year that you earn it. You can utilize the Withholding Calculator provided by the IRS and look further into this matter from their provided explanation for your tax withholding from their website.
Can the amount of distribution to a 401k offset a person’s tax bill? For the first time in a long time I had to pay back taxes; my tax preparer mentioned that I should put more in the 401k. I’m a single mother w/ a 10, 15 and 19 yo; 1 prn job and 1 full time. Last yr, I made 65K (which I cannot tell what it did for me) and needed to pay back $899! I’m maybe too late, but this month Ive changed the allowance on my W-4 form from 5 to 1 on my full time, and 2 to 1 on my prn job. And when it’s time to file my taxes, I figure my preparer can just factor in the HOH, child tax credit (and I did borrow from my mutual fund $1200). In your opinion, will I be ok to do this? If you say yes, I will leave it as is for next year and beyond (except for borrowing into my retirement account). Thanks in an advance.
The less amount of allowances claimed, the more taxes get withheld from your paycheck each payroll cycle. As you have noted, claiming a larger amount of allowances may result in a tax liability.
You may have wanted to choose to keep your 2 allowances on your prn job and reduce some of your allowance claims for your full-time job. This, of course, varies year to year depending on whether your tax situation changes. If your situation stays relatively the same as it did in a previous year, you may want to reduce your allowances by 1 or 2 claims, depending on how high your tax liability is.