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 like your article, it is very helpful. Anyways, I have not worked for the passed 1.5 years. I only went for school. Just like Peter I will be making over 50k a year in one of my job. On my other job I will make roughly 20k. Now the question I have is, do i have to claim 1 or 2 on any of my job. I also put 3.6 on my State tax for both should I put higher or lower?. Last year someone claimed me, but thats the first time since I didnt have any job. This coming year I will be filing on my own.
I own a house and I pay mortgage to it, but I dont have any other loan than that, cars are paid, and I dont have any student loan. I can not take any of my friends advice since they all have loans and I dont. They told me stuff and Iam seriously confused, if you can pls tell me on details what to do, that would be very nice.
Please reply. thanks. any information would be appreciated. Oh if it helps I will be filing in a Itemize manner.
Hi,
I suggest claiming your allowances on the higher paying place of employment W4. 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 have 3 kids and a working wife. this year I owed a huge amount ($40k) thanks to AMT. I’m likely to have AMT again next year – how many allowances should I claim? zero? Thank you for any advice.
Hi Anthony,
I suggest claiming a smaller amount of allowances than you did last year. You can also use the IRS Withholding Calculator as another point of reference. This only takes a few minutes to complete and will give you the most accurate amount of allowances to claim so that you reach a 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.
Hello
I’m single and I live with my boyfriend for 8 years, (don’t have Job) I support everything. (Rent, Car, Ins, food) I heard I can file single and claim a dependent for other realtationship. Am I eligible to claim as Head of Household? and what’s my total allowances? (except HoH, i enter 1 on A,B,D section on W-4, then total allowances comes 3 is it right?)
Hi Annie,
I suggest using 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.
Hello,
I recently got married this year and my husband and I are expecting our first child in November. I always claimed 0 on my W4. I would always get a refund at the end of the year. Now I am thinking of changing my status to,either 1 or 2. I am worried if I change to either 1 or 2 I will owe taxes at the end of the year. When we do our taxes we plan on filing married but separately. If we file separately will I be able to change my status to either 1 or 2. Oh yea my husband is going to claim our son on his taxes. Which ever works out better for us. Thanks for the help,in advance.
Hi Karisha,
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’m a recent college graduate and just getting my first job and moving out on my own making 50K a year starting next month. I understand that I should put 1 as single in B but A which said if someone can’t claim me as a dependent anymore, put a 1. Technically I’ll be living on my own and parents can’t claim me as dependent anymore so am I supposed to put 1? That would put my total and 2 and that sounds off. And I went to the IRS witholding calculator and it said have 12 allowances. What’s that all about??
Hi Peter,
The IRS Withholding Calculator may be having you claim 12 allowances since you begin your employment next month and were unable to enter a withheld amount for so far this year. I suggest claiming one allowance in your current situation.
Sounds good. Thank you very much.