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 got married in april 2014 whats the best way to file on w2 ? i claim 0 dependants husband 1 dependant and husband will be head of household at tax time
Hi Tammy,
Congratulations on the new marriage!
With any new change that financially affects you (ie: marriage, a new baby, etc.), I suggest taking a look at the IRS Withholding Calculator. This will only take a few minutes and will provide you with the most appropriate number of allowances to claim based on the answers to the specific questions they ask you.
Im single and have 2 dependents what should i claim? On my recent paycheck it said i was claiming 4 in federal and 3 in state is that right?
Hi Liliana,
That’s fine. Although, I would suggest changing your federal to 3 as well, that way you are more likely to receive a tax refund when filing your taxes.
Hi,
I am just starting a new job after 9 years. I am single, no dependents. Line A of my new W4 asks you to claim 1 if nobody else can claim you. Nobody else claims me obviously, but can I put zero, I always ‘claim zero’ for my taxes because I don’t ever want to owe money at tax time and want a refund. Should I be claiming 1 here like it says, or do I fill in zero?
Yes, you can enter zero. By entering zero you are more likely to receive a larger refund.
I am the same status as Shannon single with no dependents but I would like to claim 1 to get more money on each pay check but I dont want to owe too much at the end of the year either. What do you suggest?
Hi Tracy,
As a single person with one form of income, I always suggest claiming one. This will generally allow for less to be withheld from each paycheck while still not having to owe the IRS after filing.
I am single, living with my parents so they can claim me as a dependent. Should I claim 1 for Michigan and 0 for federal or 0 for both? This stuff always confuses me as I have just started a new job.
Hi Amber,
I suggest claiming zero on both since your parents are still claiming you on their taxes.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. By following the directions on the Personal Allowances Worksheet of your W-4, you will calculate the maximum amount that you can claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a larger 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 shannon’s situation above, I am also single, no dependents – if I choose to claim 1, does that mean I will owe at the end? Or more than likely I won’t and will still get a refund just it won’t be as big right?
Also #5 near the end asks “total number of allowances I am claiming from line H, But line H says to add and I claimed 1 in three different spots so H equals 3, but I’m confused as to which number I put in 5….is it 1 since i claimed only me or is it 3 since that’s what i added up to be?? so confusing!!! 🙁
Hi Anissa,
The top portion of your W-4 form is just a worksheet to work out your exemptions on paper. You do not need to provide this worksheet to your employer or even fill it out.
Hi Anissa,
I always suggest claiming one as single with one job. You will most likely still receive a refund and not owe the IRS.
I just got a new job. And so now, I have 2 jobs. I am not head of household. Single. 1 child. Question 1: How can i fill this thing out to get the best out of my taxes?
Question 2: Am I allowed to claim my child at both jobs?
Hi Lynette,
Congratulations on the new job!
When completing your W-4 form, the more allowances you claim, the less of your pay is withheld while the less allowances you claim, the more is withheld. You are issued a refund if too much was withheld and end up owing the IRS if too little was withheld. Although the total tax you pay remains the same, the amount of allowances you claim determines when you pay it; throughout the year via withholding or in a lump sum after filing your return. Since you have two jobs and are most likely eligible to claim head of household, I would advise that you use the Personal Allowances Worksheet on page 1 of the W-4 and also the Multiple Jobs Worksheet on page 2. Keep in mind that even if you will be filing your tax return as Head of Household, you will still claim Single on your W-4 form.
It is not suggested that you claim an allowance for your dependent on both W-4 forms. Typically, taxpayers with multiple jobs will claim the majority or all of their allowances on their primary/higher-earning job. This tends to be most beneficial tax-wise.
I have 2 kids and i always have claimed single 0 but now working i dont know what to claim now that i have kiddos. Should i claim single 0 to get a bigger refund next tax season
Hi Chrissy,
You could still claim zero and receive a larger refund when filing taxes.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck each pay period. By following the directions on the Personal Allowances Worksheet of your W-4 Form, you will calculate the maximum amount that you should claim. However, you can always claim less than that to ensure that enough will be withheld from each paycheck. If you claim zero, you’ll have the maximum amount withheld. If you claim a larger amount, you’ll have less withheld. 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.
In order to do this, 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 am head of household, I have a child that lives with me, I also have a girlfriend that lives with me who doesn’t work and also her child lives with us and the father does not pay child support. My girlfriend and I just had another baby together so I’m trying to re-calculate my w-4.
I make $62,500 per year, last year based on my income and following the Personal allowances worksheet I came up with 7, it would have been more but I did not claim her son last year.
This year with the addition of the new baby and claiming all 3 kids the form says I should put 11 allowances.
I do not want to give them any more than I have to but I also do not want to owe them any more money either.
11 Seems really high, 7 does too but I am following the allowances worksheet as it reads so I want to know if this seems accurate.
Please advice, thank you.
Hi Anthony,
The amount of allowances that you claim is based on several factors. You will first need to determine the people that live with you that can be counted as dependents based on rules provided by the IRS. Then you may also want to see if you are eligible for the child tax credit.
With any life change (ie: marriage, a new baby, etc.), I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will provide you with the most appropriate number of allowances to claim based on the answers to the specific questions asked in the application.
I am not married but will be in October. I have one child with her and 2 jobs. One is full time and one is only 8 hours a week. She does not work. I would like to keep my check decent but also have a good tax return. How many state and how many federal. I think at my main job I have 2 and 2 and my part time job I claim 0.
Hi Justin,
Congratulations on the engagement!
With any life change that could have a financial effect on you (ie: marriage, a new baby, etc.), I suggest taking a look at the IRS Withholding Calculator. It will only take a few minutes to complete and provides you with the most appropriate number of allowances to claim based on the answers to the questions that they ask.
Keep in mind that the more allowances you claim, the more you will see each paycheck because less is being withheld each pay period. However, the less you will see as a refund at the end of the tax year (with the possible chance of owing as well).