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 was just wanting to know since I am single with one dependent what should I put for total allowances for my federal tax and what should I put for my total allowances for my state taxes? I ask what I would want to put for each one and I was just needing some advise.
Hi Lady T,
You are able to claim 2 allowances on both your federal and state. Keep in mind that the more allowances you claim, the less money that is withheld from each paycheck (meaning a smaller refund at the end of the tax year or a higher chance of owing money).
Hello,
I just got a new job in a New city, I am an international working in the US, single and with no kids. I have filled a W-4 and done all my taxes for the past 4 years but I was employed and had an athletic Scholarship at my college, which they also helped with my tax filling. Which is your beat suggestion to proceed w my allowances as my new company is asking me how many allownces do I file on my W4 without chance of getting into any financial trouble in the future.
Thanks!
JS
I also used to live in GA for the past years and just moved for this new job in FL. How should I proceed about my taxes in GA, FL, and federal?
Hi JS,
If you resided in a state for only part of the tax year, you would file a part-year resident return for that state (the state you moved to and the state you moved from) along with your federal tax return.
Hi JS,
I would suggest claiming one on your W-4 as single with no dependents and one source of income.
Hi,
Im not sure how to file my tax, recently just got a new job.
I am married, head of the household, and supporting both my parents.
What do you suggest I file, I rather have a bigger paycheck and not much on refund.
Thank you!! Hong
Hi Hong,
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the instructions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim (Keep in mind that this worksheet will not be given to your employer or the IRS). However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. 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.
In order to do this, 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.
I was wondering im married but we are not togehter, we have 1 child. She claims our child and end of year. I claim head of house hold at my place. Why did i get lease back than the year before. The tax lady said it was because the w2 said married and the year before said single. Do you think the lady is right or not. Need help
i am 16 years old and about to get my first job, should my dad put me a as dependent, considering that we are a family of 5 and my dad is the only one working and his head of house hold and my mom dosent work.
Hi Rafael,
Your dad is still able to claim you as a dependent as long as:
1. you lived with him for the entire tax year
2. he supported 50% of your living expenses (ie: food, house, etc…)
3. your gross income is less than $3,900
Hi I have claimed 5 on my w-4 and have noticed my employer has not taken out any federal tax on my check will this hurt me come tax return
Hi Bryan,
This could definitely translate to you owing the IRS at the end of the year.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. By following the directions on the Personal Allowances Worksheet of your W-4, you will calculate the maximum amount that you can claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a larger 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’m in the same boat as Rafael. I am single and my parents claim me as dependent. My problem is that I’m filling out the W-4 online and it is forcing me to select either: 1. Head of household and claim myself, 2.claim yourself and your spouse, or 3. claim yourself (enter one exemption). I do not fit any of those, but I have to pick one before moving on.
Again, I am trying to claim zero.
We file married joint.
We are both working.
We have 2 children.
I file 4 on mine but am confused by the Child Tax Credit on the worksheet (letter G) and am wondering if I’m supposed should file 2 more (total of 6)?
Thanks,
I am married spouse works seasonally and we have two chidren what should i claim and how should i put that on the w4 form?
Hi Nae,
I would suggest entering 3 on your W4 and your wife can claim 1 on hers.
Question:
I just had a baby in January and recently started a new job. I always get confused when filling out the W-2 forms.
I live with my boyfriend but we are not married. I dont know how many to claim. Help!!
Recap … Single, one child, not head of house.
Thank you.
Hi Samantha,
If you will be claiming your child on your tax return, you can change your W2 to one or two. IF your boyfriend is claiming your child, I would suggest claiming 0 or 1. The lower the number means a higher chance at receiving a tax refund but more tax will be withheld from you pay.