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 was wondering I am single with 2 kids a 3yr old and a 2month old I just started working 3days ago I am also the head of my house hold, since I jst started working and text time is right around the Conner I want them to cut more from my pay check so I can get alot back at he end of the year, how much should I claim??
Hi Burline,
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 suggest taking a look at the IRS Child Tax Credit website page to see if you are eligible.
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 married to my to my wife who just recently got a job 4days ago. We also have a 1 child.
Im only claiming my self & 1 dependent (my daughter).
-because on another section it stated (enter number of dependents (other than your spouse or yourself) you will claim on you tax return.
What should i put on my dependents?
and for field C (if you are married and have either a working spouse or more than one job field)
– should i put 0?
Sh
We want a good tax return check, but i also want a decent paycheck..
Hi Erika,
When following the instructions on your W4, you are calculating the maximum amount of allowances that you can claim. You can always claim less than that. That being said, 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.
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 have one kid and my wife doesn’t work. Hence, I have opted for “Married filing Jointly with one spouse working” – with value 2 in W4 form.
What should I put on Dependent Allowances field. Is it 1 or 2 ?
Thank you.
Hi Rakshita,
You can claim your child as a dependent. I would also suggest taking a look at the IRS dependent eligibility requirements to see if you can claim your wife as well.
I am married with no children. My husband claims one (at a full time job) and I claim zero (at a part time job). Last year we owed. My husband just recently got a promotion that came with a sizable raise and I just secured a 2nd part time job, which should be starting in the next month. I used the IRS Withholding Calculator and it said we should have 7 allowances on my husband’s job, 1 allowance on my first job, and 0 on the remaining job. I cannot for the life of me understand why the calculator would tell us to claim 7 on his job! Should we just change all of our allowances to zero? Should we change our W4s to Single rather than Married filing Jointly? We would still file our taxes as married.
Hi Tiana,
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 suggest that your husband claim one allowance. I also suggest that you claim one allowance at the higher paying job and zero at the other job. Keep in mind that you are able to update your W4 at any time if you feel that too large of an amount is being withheld from your paycheck.
I just recently started a new job and I always get confused with the tax info. I am single not head of household but I have 2 kids. I just want to claim myself on the job and pick up my kids at the end of the year. I received a letter from personnel saying I couldn’t exempt and have allowances. I want a decent paycheck and a nice refund!! I can’t understand how I’m not exempt as well because I have a right to my money and I don’t have penalties. I also have childcare credits to claim. Please help.
Hi Sierra,
You’re pay roll department is correct-you cannot file exempt and also claim allowances. If you want to only claim yourself right now on your W4, I suggest claiming one allowance instead of zero.
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.
As another reference point, 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.