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 with 3 small children, I am head of household, and live with my boyfriend and would like to know what to claim on my w4. I tried the iRS Withholding Calculator but it just confused me further.
I normally claim 0 and claim my children at the end of the year on my taxes…can I claim 1 for myself and not have it affect how much I get on my refund? Or how does that work?
Thank you in advance for your kind assistance
Hi Jess,
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.
That being said, you can still claim zero on your W4 and still be able to claim your children on your taxes. Keep in mind that you may want to claim one so that you see a bit more in each paycheck yet will still have a refund or owe a small amount when you file your tax return.
Hello! I am having trouble trying to figure all of this out. I am married with 1 small child. My husband is active duty army, and i am about to start a part time 20 hour a week job. I have no idea how many allowences i should claim and we have no idea how my husbands is set up. Also i will only be working temporarily until early december. Thank you!
Hi Karen,
I suggest claiming one or two allowances until your husband is able to get a hold of his pay roll department (you may be able to as his spouse) to see how many allowances he is claiming. Keep in mind that you are able to update your W4 at anytime during employment. All you need to do is speak with your pay roll department and they are required to allow you to submit an updated W4 that will take effect the following pay period.
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 was wondering how many I can claim while getting the least taken out of my weekly check and lowering my chances of having to pay money back. I’m currently married with one child. We both work currently claim zero on our w4 and then we file jointly and claim 1 child. What should I do?
Thanks
Hi Justin,
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 am head of household and I’ve been claiming 2 on my taxes for myself and my daughter. I had my son last year 2013 but I never changed the amount that I’ve been claiming. But I do file for the child tax credit for him. Should I be claiming 3 including him as well? Will that effect the child tax credit or anything else?
After reading some of the previous inquiries, it looks like I should have been claiming 3 even before I had my son, so should I be claiming 4 now? I make between 40k and 50k annually. I prefer to have a bigger paycheck but I definitely don’t want to owe money.
Hi Qya,
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 a single parent with two dependents and 3 jobs (one full time, one part-time, and a temporary backup job, if that makes a difference). I’m not sure how many allowances I should claim.
on each W4
Hi Isis,
I suggest claiming three allowances. It is typically more beneficial to claim all three at the highest paying, full time job.
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.