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 wife and I both work full time. I make about 43k in 2017 and my wife made about 35k. WE have 3 kids under 13.. It looks like I should take the 3 for allowances and my wife should take the 0. Insurance and 401k comes out of my bi-weekly checks so even though I make more she actually brings home more.
Is that correct so have my wife put 0 on our w-4 and I put 0?
You can use the IRS with holding calculator to help you determine how many allowances you should claim on your W-4 Form. Click here to try the IRS Withholding Calculator.
Hi,
I am a Massachusetts resident, green card holder and I am working a contractor job in Indiana, living in Indiana.
How many allowances should I claim on W4?
Do I need to pay taxes in both Indiana and Massachusetts?
Thank you,
If you are a non-resident of Indiana earning income as a full-year resident of MA, you are required to file two respective state tax forms for any and all income earned in Indiana. However, the taxes that you do pay to Indiana, will be used as a non-refundable credit on your MA return for taxes paid to another state, in order to avoid double taxation.
I am single and have one job, according to the IRS tool I can have 2 allowances but I am a non resident alien, I am unsure if this means I can only have one allowance or if I can have 2?
Hello Peter,
If the IRS tool indicates you can have 2 allowances, then that means you can claim 2 allowances.
I just recently got married and don’t know how many should i claim? no child. Thanks
The number of allowances that you can claim would be around 2-3. If you are unsure, it would be best to claim a conservative number of allowances, having two for the year.
Hi,
I started a new job making 10 dollars an hour in Sept 2017.
I filed out my W-4 form not knowing exactly what i was doing. But i noticed that they arent taking any federal out of my paychecks.
My job before hand i always put 1 or 2 but never really paid attention to what that means until i noticed they were taking out federal out of my new salery.
I file head of household, have 3 kids.
I do like to receive a larger refund but I’d like to go about this without owing any money or doing this the wrong way.
HELP ME!
meant to say they were not taking federal out of my paychecks, i started off as part time and just switched to full time will the amount they are taking out change now that a switched to full time?
Because i would like to receive a nice refund but do it without having to owe the irs..
Theresa,
The amount taken out of your check depends on how you complete your W-4. Typically, hours differ when working full time compared to part time. More taxes will be taken out of a larger paycheck. You may contact your Payroll Department for more details. Keep in mind the less allowances, more taxes are taken our per check and you may be subject to a refund.
Hello Theresa,
If you would like to receive a larger refund, then you can claim less allowances. More allowances, less tax is taken out per paycheck, however, less allowances, more tax is taken out of your paycheck and you may have a refund. If you have questions you could contact your Payroll Department for advise on how to fill out your W-4.