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!
im the head of house hold sinlgle parent with 4 kids i want to get a bigger pay check i only have 2 dependents bwant to know if i shoud add more dependents i want to get back a good amount of tax return
Hi Christina,
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.
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.
if i am a single mother who is head of household with 2 kids and a boyfriend that depend on me i am the only one who has a job so the only income the house recieves is mine how many allowences should i put on a w4 form
Hi Laura,
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, just had a baby in August so I have one dependent. I would like to know what I should claim to get the most out of my paycheck and tax refund. Also since I am single and now have a dependent would I be able to file head of household as well?
Hi Stephanie,
I suggest claiming two on your W-4 form.
Typically, you can claim head of household if you are unmarried and pay more that 50% of the costs of keeping up a home for yourself and your dependent(s) or other qualifying individuals.
I have 4 children and on my check it says 7 allowances. Also on my check it does not show any federal taxes being taken out. Is this because I have 7 allowances? Will I still receive a income tax and is there any way to change this now since it is so late in the year
Hi Layah,
Claiming seven allowances may cause you to owe money at the end of the tax year. You can update your W-4 with your employer at any time and it will take effect the following pay period. I suggest lowering the amount that you are claiming on your W-4 form.
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 have just went back to work after being out about 10 years. I am single, head of household and have 1 part time job, I have 3 children. I followed the directions on the W-4 but it has me with 11 allowances. Now correct me if I am wrong but I think that way to high. I surely do not want to pay taxes when it’s time, I would like to receive a refund. Please help me figure this out.
Hi Missy,
When following directions on your W-4 form, you are calculating the maximum amount of allowances possible. You can always claim less in order to prevent yourself from owing the IRS at the end of the tax year.
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 tried that Withholding Calculator befor, I couldnt fill it all out, wants me to put how much I will make, I really have no idea. I was hoping I had given enough information for you to suggest a good number for me to claim. Thanks for you time though 🙂