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 am single (no kids) not married, just started a new job, what do I put (0-1) for Fed. withholding? I am a dependent for my dad but I know for a fact that he will not be filing taxes this year. Can I still claim one allowance for myself in that case?
Any response is much appreciated!
You are eligible to always claim at least 1 allowance, and if you are looking to file a return claiming yourself as a dependent, your allowances that can be claimed goes up to 2. Just ensure with your parental guardian that they will not be filing you as a dependent on their return in the future.
I started a new job in November with a significant increase in salary. Bought a new house back in June this year and live there now with my girlfriend and her son. I myself own the home, pay for the mortgage, and contribute to the living expenses for our household. She also works but I make the majority of the income. The child is 13 years old. Initially, I filled 0 and 1 but the amount of taxes that were being taken out of my paycheck were too high. How should I file if I want the most out of my paycheck but want to avoid owing the IRS?
If you’re filing your own return, with a dependent filing with the 13-year-old, your qualified allowances can be up to 3. However, this is only in the case that you are allowed to claim the 13-year-old if your significant other has given you permission and are not claiming them on their return themselves.
Hello,
I am an International student working on my CPT, I am single/ Unmarried, no Kids and doing a single job. 1 have claimed 3 allowance, assuming I am head of the house, since I stay with my friend but I take care of most of the expenses, will I be having more tax deductions every paycheck ? will I get more tax returns ? or am I even eligible for all or different types of the taxes since I am not a citizen and wont use much of the facilities.
Please excuse my concerns, it maybe totally stupid, but I want to be aware of the law and then abide to it.
Appreciate your help.
To file head of household, you must have a qualifying dependent. Generally, the number of allowances you should claim will correspond to the number of personal and dependency exemptions you can claim on your tax return. The IRS also has a withholding calculator on their website that can help you determine how many allowances to claim.
Hello.
I am married to a foreign national (we live overseas). I have two jobs – one with the US government and one with a private institution in the US. For the private institution job I am categorized as an independent contractor.
We recently had a baby.
I have not claimed my spouse on my tax forms as we live overseas and as he is not a US citizen, he does not need to pay taxes to the US government.
My W2 needs updating and I will like to know what exceptions I can claim.
Also, on the W4 form, #3, states Single, Married, Married but withhold at a higher Single Rate. Which of these applies to me?
Many thanks,
Marg
Generally, the number of allowances you should claim will correspond to the number of personal and dependency exemptions you can claim on your tax return. The IRS also has a withholding calculator on their website that can help you determine how many allowances to claim.
I am a teacher have one child and pregnant with another, I have lots of student loans, My husband is a teacher too and is going to school as well. I was told if we fill seperatly I can have a much smaller monthly payment to start paying my loans, but I still needs all the returns I can get, since the delivery expenses are crazy, can I include my child delivery expenses in my taxes? my older child goes to after school program, can I include that as well?
As long as you have the proper documentation, you will be able to deduct your medical expenses as well as your child care expenses if they qualify to be claimed for the credit.