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 am single and i have 2 job one full time and one part time and both of my job i want take out the maximum amount of my 2 paycheck for hopefully have refund next year or less to pay
do i put zero on both?
thank you
Hi Jessica,
That is correct. You will claim zero allowances to have the maximum amount withheld.
Hi
I am single and have 2 jobs …. I didn’t know about the taxes process while completing my papers because I am an immigrant and I don’t have an idea about all those papers because it is quite different from I am from . I claimed zero as allowance , but I have high amount that is deducted for taxes . Is there any chance I can do something so they can substrata to few amount from my paycheck ?
Thank you
Hi Sanaa,
I suggest claiming one on your W-4 form. This will allow for a bit more in each paycheck.
Hi there.
I have been unemployed for most of 2014 with the exception of one contract job that earned me a total of $850 and I believe I was in the 10% tax bracket which means I only have paid about $85 or so in federal taxes this year. I just secured a job that has a yearly gross salary of $56,000.
I am single with one job and will be claiming head of household. I have a feeling if I only claim a few allowances I will get a huge refund next year but prefer to get more of that money in my bi-weekly paycheck so that I can use the money towards paying off debt.
I did the IRS tax calculator online and it said I should claim 8 allowances and that this amount of allowances will yield me a $100 refund, which I find very ideal. Do you think the 8 allowances number seems high for someone who has been essentially unemployed for most of the year and will be earning the equivalent of a $56,000 salary for the remainder of the year?
I of course don’t want to owe the government anything next year but also want to squeeze out every penny possible now. Thanks in advance for your help!
Hi Sarah,
Claiming eight allowances as a single person with one job does seem a bit high. 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.
Hi, I am married and have 3 children. How many allowances should I put on w-2?
Hi Tavi,
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 Heal of house hold, I currently claim zero, I just worked 44 hours of Overtime with my job and for the next 3 or so pay periods I would like the maximum refund back, My payroll dept will allow me to have up to 14 allowances, the IRS calculator recommends 7 what if I decided to do 14 allowances and then just change it back after a few pay periods?
Hi Justin,
It shouldn’t have MUCH of an effect on your refund/amount you owe at the end of the tax year for only three pay periods.
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.
Married. No children. Not head of the house hold. Should I put 1 or 0? And theres a question following “Additional amount, if any, you want to withheld from each paycheck: $ □” Should I put 0 in the box?
Hi Tino,
You can claim zero or one allowance depending on your preference.
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.
You can enter a zero in box #6 unless you need your employer to withhold more from your paychecks.