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’m married and both myself and my husband work. we do not have Kids. what should I claim and how should I put that on the w4 form?
Thanks a lot
Hi Samin,
If you are each claiming yourselves, then you can continue to claim one allowance and Married.
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.
Thanks a lot.
Hello,
I am marrying very soon (I currently take zero allowances). After the wedding my new bride will not work and she will be giving me a beautiful new step-daughter who will continue to live with us full-time. We have an agreement with the child’s father to alternate taking the child tax credit each year. Am I still allowed to take three allowances for myself, my new bride, and our little girl? Does the child tax credit have any bearing on this?
Thank you very much,
Brad
Hi Brad,
Congratulations on the new additions!
You can still claim three allowances without claiming for the child tax credit and as long as your new bride-to-be is considered your dependent for tax purposes.
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 started the year off married claiming 1, I’m now divorced as of August and changed my status to single 2.
I’d like to maximize my take home check. I was just curious if claiming 2 is the right choice. I have only 1 Job with gross income of over 32k a year.
Hi Mike,
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,
I recently started a new job. I am single, only have one job and no one can claim me as a dependent. According to the W4 form, in the worksheet, I would have to put a 1 on question A and another 1 in question B, which will give me a total of 2 personal allowances. Is this the best option for me?
Hi Elisa,
By following the directions on the W4, you are calculating the maximum amount of allowances that you can claim. However, you are allowed to claim fewer. In fact, in many cases, single individuals with one job will typically claim zero or one allowance.
You can also take 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 Elisa,
By following the directions on the W4, you are calculating the maximum amount of allowances that you can claim. However, you are allowed to claim fewer. In fact, in many cases, single individuals with one job will typically claim zero or one allowance.
You can also take 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.
Hello. I immigrated to the US recently and have just been accepted into my first US job. I am married to my husband who is 30 years old and hasn’t been employed for a number of years nor will he any time soon. His mother claims him as a dependent on her tax returns as he has lived with her forever. We will be filing taxes in 2015 (for the 2014 year) as married filing jointly. I am not claimed as a dependent by his mother, but would him being claimed be a problem at tax time if we want to put two exceptions on my W-4 (1 for nobody claiming -me- as a dependent and 1 for married with a non-working spouse)? Should his mom stop claiming him?
Hi Emma,
Legally, one dependent cannot be claimed by two people.
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.