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 just started a new job and would like to make sure I do not want to owe taxes. I am single with 2kids. I am unclear which numbers to put where on the w4. Do I put 0 on lines a through g so the total is zero.
Hi Sherry,
The only line on your W-4 form that your employer will be referring to when it comes to how many allowances you are claiming is line 5 towards the bottom. This line represents the total amount from line H OR from the applicable worksheet on page 2.
You technically only need to provide your employer with the bottom portion of this form. The top portion (“Personal Allowances Worksheet”) is given for your personal records and can be used to work out on paper how many allowances you are eligible to claim.
Hello, I have been working at a minimum wage paying job and believe I claimed “0” allowances out of fear of making a mistake. I also just got a second job that pays about a good $3 over minum wage and claimed “0” for the same reasons. This year will be my first year claiming taxes and I am very confused. since I have teo jobs should I change both to 1 allowance? Or should I claim 0 on the higer paying job and 1 or 2 on the minimum wage one? I am looking to get the most out of my checks without oweing any money. So a huge refund check is not necessary, I will accept a decent one, especially if I”‘ getting the most out of my paychecks all year round. Your help would be much appreciated as the IRS calculator isn’t very helpful to me because most jobs here in NY don’t give set hours, but have varying scheduling and hours given every week. Thank you.
Hi Nasia,
I suggest claiming one allowance at the higher paying job.
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.
please email me back . I was filling out my w4 and I don’t know what to do I’m single two children I don’t know what to put on second line either
Hi Sarah,
I suggest claiming no more than three allowances.
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 71, collect SS,and am starting a job part time. My job income in 2015 will be approx 16000 plus SS for total of 32000.
I have mortgage interest of 12000/annual. Iam single. Also is there a penalty for claiming more exemptions on W4 suchas 4 to lower the tax bite and have more in paycheck?
Hi RJ,
The ‘penalty’ would be increasing the likelihood of you owing money to the IRS after filing your taxes.
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.
I am single taxes are killing me I get 10.50 a hour 35 hours a week how many can I claim to get less out of my check but not owe taxes at the end of the year?
Hi Shanda,
I suggest claiming one allowance. If you are claiming one right now, then you can choose to claim two.
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.