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!
Hello,My daughter is 18 and still lives at currently but at some point before tax time will be moving into her own placeand also she had a job but no longer works so with being said should I file zero on my w-2 form I just want to make sure that im following all the rules and don’t owe anything to IRS please help me understand.thank you in advance.
Hi Victoria,
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.
Hi im filing head of household, payed 50 a week child support with no receipts, but i remember claiming four on my w4. I worked for 3 months and made just around 4000. No kids and not married will i still gey money back?
Hi Joe,
If you create an account with our website and enter this information along with a bit more information, you will be able to see your estimated refund amount before e-filing, submitting or paying anything.
Hello,
I just started a new job. I filled out the W4 and it says:
If no on can claim u enter 1
then the second part says “If u are single and have only one job” enter 1
it then says add lines a-g and on h enter that which = 2
Now at the bottom of the withholding certificate it says enter total allowances which is 2. Is that right? Doesn’t that mean I would have to owe. I don’t want to owe. So would I change those numbers I also live in NYC and this is the first time I have ever been charged NYC city income tax and NY SUI/SDI tax. What does this all mean?
Please help and thank you so much in advance.
I also have an independent production company that me and my two partners file as well but that’s separate in a way. I already did that last year
Hi Dorell,
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.
As far as the extra NYC tax, there is a rate schedule that corresponds to it.
I am single 23, starting a new career out of college and still living at home. should I claim 0 or 1? If I claim 1, should I open a bank account or some kind of investment plan and put say $100 into it a month or claim 0 and have more taxes taken out each pay check?
I’m a saver and good with money. thank you
Hi Chris,
I suggest claiming zero or one allowance without having to expect to owe much at all at the end of the tax year. Depending on your preference, by claiming zero allowances, you will see less in each paycheck since the maximum amount will be withheld. By claiming one allowance, you will see a bit more in each paycheck but may have less of a refund at the end of the tax year.
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.
Hi,
I am the head of the household with me , wife and sister. How many allowances should I claim ? Should I claim 3 as even she does not work ?
Thank You!
Hi Khan,
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 am single with two jobs this year but I already quit my first job when I had my other job. I have a 7year old son dependent and I want to get more tax refund by the end of the year. How many should my allowance be?
Hi Krisa,
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.