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,
My paycheck currently says single 2.
I recently left my other job and now I am single with only 1 job. I am not claiming any dependents nor am I claimed as one.
Can I/Should I change my status and to what should I change it to, single 1 or single 0?
Thank you.
Hi Tony,
I suggest claiming either zero or one allowance.
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 am a single parent with 1 dependant, 1 job. I have 7 allowances on my W4, how/where can I add more allowances? My 2013 tax refund was $3800, I would much rather get a smaller tax refund ($500-$1k) and have more money to take home from my weekly paychecks.
Hi Shay,
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.
Hi, I recently purchased a new home. I became eligible for the Mortgage Credit Certificate. I’m trying to revise my W4 to get more take home pay. I’m single with 1 job and no children. I have claimed 2 exemptions on my W4. Are their any more exemptions that I can claim?
Hi Ben,
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 suggest sticking with the two allowances. By claiming more than two, you heighten your chances of owing money at the end of the tax year.
HI! I currently claim 4 exemptions but my husband is unemployed but still files as head of household. I would like to get more money in my monthly paycheck. Would claiming 2 do the trick?
PS We have 2 children
Hi Kim,
Claiming two allowances instead of four will cause the amount you receive in each paycheck to be smaller.
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.
Hello and thanks for replying to posts.
I am 34 and single. I have an on-call seasonal job that I recently started (May 30, 2014) as well I will be working as a Paid on-call Firefighter later this year. My on-call seasonal job varies week to week as to pay, some weeks I make only a couple hundred dollars or nothing at all and some weeks I make $2,000+. My job is based on emergency incidents (wildfires, natural disasters, etc) so I never know how much I’ll make or how much I will work. I will most likely claim zero as a Paid on-call Firefighter but I am unsure as what to claim on my other on-call job. My last paycheck (2 weeks of work) had 35% taxes taken out because it was calculated on earnings of 100k a year, while I would like to make this annually I will not come close and I am unsure as to how much I will even make. Last year I worked part time and only cleared $3,000 for the entire year as I was a student. Some people at my work claim 5 to 7 allowances and I am unsure as to what I should claim so I don’t owe at the end of the year but also don’t want 35% of my paycheck tied up in taxes. I have referred to the IRS tax withholding calculator but there are too many variables or am I missing something when filling this out. Thank you for your time.
Hi Peter,
I suggest contacting the IRS directly or possibly speaking with your payroll department about this specific situation. They are familiar with this issue since they have had employees who have needed to complete W4s as seasonal workers.