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 have had two jobs but now working one I did claim three on both jobs held, now I have one job , I need to claim five to get the most out of check then I was thinking about changing it after I make enough for what I needed then changing it too single and claim zero plus have them take out an extra 20.00 dollars, do you think I would be okay for income tax. Head of house hold two dependents. Was going to leave the allowances at five for a month which is two pay periods.
Hi Ashley,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year. Once you know the number of allowances to claim to “break-even”, you will be able to calculate how many allowances to claim based on your preference to get the most out of 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 have worked the same job for 7 years but just this week I started a second job. I have 2 small children and would like a bigger refund at the end of the year instead of a higher paycheck each week. I’m unsure of what number of allowances to claim. I’m unsure of how many I claim at my first job as well but at the end of the year I always receive a large tax check
Hi Samantha,
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. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.
I suggest checking to see how many allowances you claim on your first job. The reason being is because you can split allowances between both jobs.
More information:
Single mom, two jobs. How do I maximize my tax return? Right now I marked 1 for both jobs for a total of 2.
At one job I have 1 exemption and 0 for state and 0 for my city.
For my other job: I claimed 1 exemption for my federal and 0 for my state and city.
I do have childcare expenses. My son goes to daycare.
Should I change it or leave it as it? In the previous years (I just had my son in January) I always owed because I claimed one exemption at both jobs. If I need to change one job to 0 and the other to just 1 to maximize my return I am ready to do that.
Thanks
Hi Sydney,
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. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.
Single mom, two jobs. How do I maximize my tax return? Right now I marked 1 for both jobs for a total of 2.
HI,
I just recently got married. My husband and I have one 19 year old child who works and lives at home full time.
We both work full time, I dont want to have to pay at the end of the year. What is the best way to file?
Can I still claim my son? Will that interfere with his taxes.
He also pays rent, I have to claim that on my taxes as well??
Thanks
Hi Fcool,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim in order to reach that break-even point at the end of the tax year.
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.
Also, have your son take a look at the IRS Filing Requirements. This will help him figure out how to file based on several factors. He will most likely be claiming 0 or 1 allowance on his W4. However, the IRS Withholding Calculator will be another good reference point for him as well.